MARKET REPORT July
15, 2015
Markets remained expected in a range and consolidate with
the levels of 100-DMA continuing to act as resistance at Close levels. The
Markets saw a negative opening but it managed to recoup its morning losses
which were modest and the Markets traded flat by late morning trade. However,
the Markets weakened in the early afternoon trade to slip into negative
territory and it formed intraday low of 8424.10. It was the second half of the
session which saw the Markets attempting to surge from its lower levels. The
Markets managed to recoup all of its losses to trade flat and it even further
went on to form the day’s high of 8480.25. However, weakness crept in and the
Markets once again saw paring of gains from higher levels. It saw itself
oscillating in a range and finally settled the day at 8454.10, posting a minor
loss of 5.55 points or 0.07% while forming a higher top and higher bottom on
the Daily Bar Charts.
MARKET TREND FOR WEDNESDAY, JULY 15, 2015
Today remains a critically important day for the Markets.
The Markets have resisted at its 100-DMA yesterday but today, we can expect the
Markets to open on a modestly positive note. This positive opening is likely to
see them opening above its 100-DMA levels and continue afresh with its up move
after a day of consolidation yesterday. However, it would be critically
important for the Markets to trade above its 100-DMA levels in order to
capitalize on positive opening.
For today, the levels of 8480 and 8525 are immediate
resistance levels for the Markets. The supports exist at 8424 and 8390 levels.
The RSI—Relative Strength Index on the Daily Chart is
57.4388 and it is neutral as it shows no bullish or bearish divergence or any
failure swings. The Daily MACD continues to remain bullish as it trades above
its signal line.
On the derivative front, the NIFTY July futures have added
over 2.11 lakh shares of 1.08% in Open Interest.
Coming to pattern analysis, the Markets have confirmed their
bottom formation and are likely to now continue with its up move. With all
global and domestic news flows in place, it is now likely to move past its
100-DMA levels as well and therefore trade above all of its three moving
averages. Having said this, over coming days, the 50-DMA, which trades below
the 100 and 200-DMA will also show improvement. It has already stopped falling
and has started rising upward moderately. The Markets are all likely to come
out of intermediate bearish trend and get back into consolidation mode once
again. However, all this will hold true only if the Markets manages to keep its
head above its 100-DMA levels.
All and all, the triggers are positive and going by the
structure of the Chart read along with technical lead indicators, we are likely
to see the Markets moving past its 100-DMA successfully. It is also more likely
to sustain above that level and attempt to move past it also at Close. Modest
purchases may be made and every dip should be used to make selective purchases.
Still over exposure should be avoided and profits should be guarded at higher
levels.
Milan Vaishnav,
Consulting Technical Analyst
Af. Member: Market Technicians Association, (MTA), USA
Af. Member: Association of Technical Market Analysts, (ATMA), INDIA
www.EquityResearch.asia
http://milan-vaishnav.blogspot.com
Consultant to:
www.MyMoneyPlant.co.in
+91-98250-16331
milan.vaishnav@equityresearch.asia
milanvaishnav@yahoo.com
Consulting Technical Analyst
Af. Member: Market Technicians Association, (MTA), USA
Af. Member: Association of Technical Market Analysts, (ATMA), INDIA
www.EquityResearch.asia
http://milan-vaishnav.blogspot.com
Consultant to:
www.MyMoneyPlant.co.in
+91-98250-16331
milan.vaishnav@equityresearch.asia
milanvaishnav@yahoo.com
