MARKET REPORT March
20, 2015
After an initial cheer, the Markets completely failed to
capitalize on the opening gains and pared more than 150-odd points from the
high point of the day to end the day with a loss. Following news flow of FED
not hiking interest rates in April, the Markets saw a decently positive opening
on expected lines it strengthened further as it formed the day’s high of
8788.20. However, until afternoon, the Markets then slowly pared almost half of
its gains. In the last hour and half of trade, the Markets saw very sudden
paring of gains and it lost all of its gains to trade in negative. It went on to
form the day’s low of 8614.65 coming off more than 150-odd points from the high
point of the day. It finally ended the day at 8634.65, posting a net loss of
51.25 points or 0.59% while forming a higher top but lower bottom on the Daily
Bar Charts.
MARKET TREND FOR
FRIDAY, MARCH 20, 2015
Expect the Markets to see a quiet and flat opening today.
The Markets have tested its support zone of 8620-8660 levels and it would be
critically important to see the behavior of the Markets vis-à-vis these levels.
It would be extremely crucial to see that the Markets do not breach these
levels and its filter. If it does so, we could see some more minor weakness
creeping in to the Markets. There is likelihood that the Markets will move back
above the 8640-60 levels and remain in a ranged consolidation.
The levels of 8695 and 8740 will act as resistance for the
Markets. The levels of 8620 and 8575 will act as immediate supports.
The RSI—Relative Strength Index on the Daily Chart is
43.6483 and it continues to remain neutral while showing no bullish or bearish
divergence or any failure swing. The Daily MACD remains bearish trading below
its signal line.
On the derivative front, the NIFTY March futures have shed
over 2.86 shares in Open Interest. This singular figure, with the expiry week
beginning from Monday will be of little help. The NIFTY PCR stands at 0.87 as
against 0.89. At this juncture, we would like to point
out one important thing. Some suspicious and invisible activities are being
observed in the Markets. In all of the last three session, both FIIs and DIIs
have remained net buyers to a respectable extent in the range of 1200-1500
crores. There is virtually no data available to show distinctly who the sellers
are who have been selling of in the Markets in a very predictable and similar
fashion.
Coming to pattern analysis, the Markets have therefore
tested its support zone of 8620-8660 levels once gain. As mentioned earlier, it
would be crucially important for the Markets to not to breach this levels and
its filter in order to avoid some more weakness. If it manages to stay above
8640-8660 range, it would continue to remain in ranged consolidation.
Overall, with some artificial activities observed in last
three trading sessions, there are chances that the Markets may slightly disobey
and disregard technicals. However, with all external news flow intact, there
are chances that the Markets may not see lenient correction and continue to
remain in a range bound consolidation. However, while avoiding significant fresh
exposure in the Markets, cautious outlook 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
Consulting Technical Analyst,
Af. Member: Market Technicians Association (MTA), USA
Af. Member: Association of Technical Market Analysts, INDIA
www.MyMoneyPlant.co.in
+91-98250-16331
