MARKET REPORT July
20, 2015
Markets continued to consolidate on Friday as it moved in a
very narrow range throughout the session and ended the day with a very minor
gain. The Markets saw a modestly positive start and soon formed its intraday
high of 8642.95 in the early minutes of the trade. It soon came off from those
highs to trade flat. It further went on to dip briefly in the negative and
formed the day’s low at 8593.15. After forming the day’s high and low in the
morning trade, the Markets spent the rest of the session trading in a sideways
trajectory. In the late afternoon trade, it did perk up a bit but came of from
those levels as well. It finally ended the day heading nowhere at 8609.85,
posting a very minor gain of 1.80 points or 0.02% while continuing to form a
higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR MONDAY, JULY 20, 2015
The Markets are once again likely to open on a flat to
mildly positive note and look for directions. However, it is also likely that
the Markets do not achieve any directional bias and shows some consolidation at
higher levels, resisting to a minor extended trend line resistance. Though all
lead indicators and structural formation of the Charts continue to portray
underlying buoyancy, some amount of consolidation at higher levels cannot be
ruled out, which would be in fact healthy for the Markets.
For today, the levels of 8640 and 8665 will act as immediate
resistance levels for the Markets. Supports would come in at 8610 and 8575
levels.
The RSI—Relative Strength Index on the Daily Chart is
65.5847 and it has reached its highest value since last 14-days which is
bullish. It does not show any bullish or bearish divergence. The Daily MACD is
bullish as it continues to trade above its signal line. On the Weekly Charts,
the Weekly RSI is 55.8514 and this too has reached its highest value in last 14-weeks which is bullish. The
Weekly MACD however continues to remain bearish as it trades below its signal
line.
On the derivative front, the NIFTY July futures have shed
92,350 shares or minor 0.43% in Open Interest. No major unwinding has been
observed. The NIFTY PCR stands at 1.22 as against 1.19 on the previous day.
Coming to pattern analysis, the Markets are likely to face
some resistance near its minor trend line drawn from 8000-levels. This does not
constitute a major resistance but it can certainly cause a Market to
consolidate sideways and in a range bound manner. It is also likely that the
Markets moves past this trend line in a day or so without much consolidation.
In any case, if we happen to encounter some consolidation at higher levels, it
would be perfectly healthy for the Markets.
Overall, as mentioned earlier, the undercurrent in the
Markets certainly remains buoyant. Though it is likely that we may encounter some consolidation at
higher levels, it would be in a ranged and sideways trajectory. Any temporary downsides
should be utilized to make selective purchases with vigilant protection of
profits at higher levels. Overall, neutral to positive outlook is advised for
today.
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
