MARKET REPORT November
20, 2014
The Markets continued to show quite good amount or
resilience as it recovered from the lows of the day to once again end the day
with minor gains. The Markets saw a
modestly positive opening but soon after a positive start it drifted into the
red after a range bound trade in the morning session. By afternoon trade, the
Markets slowly drifted to the low point of the day at 8353.15. The Markets once
again saw a range bound trade in the second half of the session. However, in
the last hour and half of trade the Markets saw itself recovering from lower
levels. It slowly recovered all of its gains and traded flat. It further went
into positive territory and also went on to form the day’s high of 8410.85.
After hovering around those levels, it finally ended the day at 8401.90,
posting a minor gain of 19.60 points or 0.23% while forming a lower top and
lower bottom on the Daily Bar Charts.
MARKET TREND FOR FRIDAY, NOVEMBER 21, 2014
Due to the Markets severely consolidating in a sideways
trajectory, the analysis continues to remain on the similar lines. The Markets
can once again see a quiet opening and we can continue to see the Markets
trading in a ranged manner with some amount of volatility ingrained in it. The
intraday trajectory continues to remain critical with the levels of 8455 acting
as immediate resistance.
The levels of 8420 and 8455 would act as resistance whereas
the supports would come in much lower at 8270 and 8215 levels.
The RSI—Relative Strength Index on the Daily Chart is
68.6569 and it is neutral as it shows no bullish or bearish divergence or any
kind of failure swing. The Daily MACD continues to remain bullish while trading
above its signal line. On Candles, A hanging man occurred (a hanging
man has a very long lower shadow and a small real body). This pattern can be bullish or bearish,
depending on the trend. If it occurs
during an uptrend (which appears to be the case with NIFTY) it is called a hanging
man line and signifies a reversal top
On the derivative front, NIFTY November futures have further shed over 5.73 lakh shares or
2.61% in Open Interest. This signifies short covering from higher levels being
observed in the Markets.
Going by the pattern analysis, the Markets have continued to
move in sideways trajectory after attempting a breakout. On the Weekly Charts,
it has continued to resist to the rising upper trend line of a broadening
formation. On the Daily Charts, therefore, the Markets are showing some signs of
immediate short term weakness.
Given this reading, the Markets are likely to continue to
consolidate sideways trajectory in a ranged manner with a mild downside bias.
Under such circumstances, the approach of very vigilantly protecting profits at
higher levels should be continued. Fresh purchases in defensives can be made as
some sectoral out performance would be seen but this should be done extremely
selectively. Overall, continuation of cautious approach is advised for the day.
Milan Vaishnav,
Consulting Technical Analyst,
Af. Member: Market Technicians Association (MTA), USA
Af. Member: Association of Technical Market Analysts, INDIA
www.MyMoneyPlant.co.in
Af. Member: Market Technicians Association (MTA), USA
Af. Member: Association of Technical Market Analysts, INDIA
www.MyMoneyPlant.co.in
+91-98250-16331
