MARKET REPORT December
15, 2015
The Markets had a volatile session
yesterday but traded precisely on dotted lines as it attempted to take support
on the Double Bottom pattern support and ended the day with modest gains. The
Markets opened negative and formed its intraday low of 7551.05 in the early
minutes of the morning trade. However, it crawled back to trade flat near its
previous close quickly and traded with limited gains. The Markets spent the
most part of the session in a bit wide 50-odd points range and remained
volatile while it oscillated back and forth within this range. Though it formed
its day’s high of 7663.95 in afternoon, it pared nearly all of its gains in
late afternoon trade to trade flat and even dip briefly into negative. However,
one again it crawled back and finally managed to end the day at 7650.05,
posting a net gain of 39.60 points or 0.52% while forming a lower top and lower
bottom on the Daily Bar Charts.
MARKET TREND FOR TUESDAY, DECEMBER
15, 2015
Markets have so far traded very much on
expected lines and have attempted to take support near its important pattern
support of 7540. Today as well, we can expect a quiet start to the Markets and
this level, i.e. 7540 will continue to act as important support to the Markets.
The Markets are likely to see some consolidation and some minor technical
pullbacks as well but on the upper side, another level of 7680-7700 levels will
continue to pose resistance as these are the pattern supports it breached on
its way down.
Today, the levels of 7680 and 7700 will act
as immediate resistance to the Markets. The supports come in at 7540 levels.
The RSI—Relative Strength Index on the
Daily Chart is 36.5648 and this remains neutral as it shows no bullish or
bearish divergence or any failure swings. The Daily MACD remains bearish as it
trades above its signal line.
On the derivative front, the NIFTY December
futures have added over 3.87 lakh shares or 1.99% in Open Interest. The NIFTY
PCR stands at 0.81 as against 0.76.
Coming to pattern analysis, the Markets
have attempted to take support at one of its very important pattern support and
52-week low of 7540. The Markets rebounded from there on expected lines yesterday
but have still remained within a limited range and expects to encounter few
more resistances on the way up. There are chances that in event of very less
participation, the Markets consolidate and oscillate a bit in a give range and
then pare some ground again. However, there will be no serious breach on the
downside until the Markets are trading above 7540 levels. However, there are no
signs of any clear bottom formation and the Markets continue to remain
vulnerable to sell-offs at higher levels.
All and all, as mentioned above, the
Markets are not yet out of the woods at all and though we have witnessed a
technical pullback on expected lines, it continues to remain vulnerable to
selloffs at higher levels. We continue to reiterate cautious outlook on the
Markets and advice to keep exposures down to very limited levels until sings of
clear bottom formation are seen.
Milan
Vaishnav,
Consulting Technical Analyst
Af. Member: Market
Technicians Association, (MTA), USA
Af. Member: Association of Technical Market Analysts,
(ATMA), INDIA
+91-98250-16331
