MARKET REPORT March
22, 2016
Markets continued to inch upwards precisely
on expected lines and ended yet another day with decent gains. The Markets saw
itself opening above its 100-DMA levels and stayed above it for the entire
session. After seeing a modestly positive opening, the Markets failed to give a
runaway rise but maintained itself above the 100-DMA levels. The first half of
the session was spent with very limited gains in sideway trajectory. The
Markets headed nowhere but it continued to maintain its critical levels. It was
in the second half of the session that the Markets saw further strength coming
in. It strengthened itself and went on to post gradual highs. The Markets went
on to form the day’s high of 7713.55 by end of the session. These levels were
maintained and it finally settled the day at 7704.25, posting a net gain of
99.90 points or 1.31% while forming a higher top and higher bottom on the Daily
Bar Charts.
MARKET TREND FOR TUESDAY, MARCH 22,
2016
NIFTY have risen over 880-odd points from
the lows it made in the Budget session. Today, the Markets are likely to see a
quiet opening and there are all chances that the Markets may see some profit
taking or it may consolidate from these levels. Few points from here, the
Markets meet couple of pattern resistance on the Daily Charts. Therefore, the
intraday trajectory that the Markets form would be critical to watch out for.
The chances of some retracement cannot be ruled out.
For today, the levels of 7725 and 7740 will
act as immediate resistance levels for the Markets. Supports come in lower at
7610 level.
The RSI—Relative Strength Index on the
Daily Chart is 66.5447 and it has reached its highest level in last 14-days which
is bullish. It does not show any bullish or bearish divergence on the Charts.
The Daily MACD remains bullish as it continues to trade above its signal line.
On the derivative front, the NIFTY March
futures have shed over 7.51 lakh shares or 3.38% in Open Interest. The NIFTY
PCR stands at 1.05 as against 0.99 yesterday.
Coming to pattern analysis, the Markets
resisted to the level of 7550 for several days. This was the level that the
Markets breached on the downside and it was the triple bottom support for the
Markets while it formed a Descending Triangle. On its way up, this level posed
great level of resistance and forced the Markets to consolidate for several
days. However, as the Markets breached this level on the upside, it gained
nearly 150-odd points from there. It has now approached a pattern resistance
once again. There are great chances that the Markets may consolidate at this
level or may induce some profit taking post some gains today.
Overall, the Markets are all likely to see
some consolidation or some amount of profit taking from higher levels today.
With the Markets approaching multiple pattern resistance, this possibility
cannot be ruled out. It is now advised to refrain from major purchase and
greater emphasis should be laid by short term trades to book and protect
profits at higher levels. Cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst
Member: Market
Technicians Association, (MTA), USA
Member: Association of Technical
Market Analysts, (ATMA), INDIA
+91-98250-16331
