MARKET REPORT February
25, 2014
After opening on a negative note the Markets inched up for
the second day in a row and ended the day with modest gains. The Markets saw a
negative opening as it opened modestly down. However, after opening on the negative
note, it formed its intraday low of 6130.80 in the early minutes of the trade.
The Markets saw itself trading in negative territory in the morning trade but
it had remained in upward rising channel since opening. This saw the Markets
taking itself in the positive zone by late morning trade. The Markets for the
rest of the session remained in upward rising trajectory for the rest of the
session and also moved past its 100-DMA and 50-DMA as it kept making gradual
intraday lows. It went on to mark the day’s high of 6191.85 and finally
ended the day at 6186.10, posting a
modest gain of 30.65 points or 0.50% while continuing to form a higher top and
higher bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
The Markets are expected to open on a modestly positive note
and continue with its up move at least in the initial trade. The session would
remain dominated today with the rollovers as we enter the penultimate day of
the expiry. Tomorrow would be the expiry of the current month, as Thursday is a
trading holiday. The Markets are likely to find resistance near their opening
levels and we may see some capped volatility today.
For today, the levels of 6215 and 6250 are immediate resistance
levels for the Markets. The supports would exit at 6150 levels and further down
at 6125.
The RSI—Relative Strength Index on the Daily Chart is
56.0147 and it has reached its highest value in last 14-days which is bullish.
It does not show any bullish or bearish divergence. The Daily MACD continues to
remain bullish as it trades above its signal line.
On the derivative front rollovers continued as the NIFTY
February futures shed over 15.94 lakh shares or 11.41% in Open Interest whereas
the March futures added 20.73 lakh shares or 55.14% in the Open Interest.
On the Daily Charts, the Markets have neared its pattern
resistance levels. There is a minor double top resistance at 6190 levels. This
has been created by the gap down opening that the Markets saw on the 27th
of January. The Markets are likely to see some resistance between 6190 and 6120
levels. This is likely to cause the Markets to once again see a ranged
consolidation or even some minor correction.
All and all, with the session expected to remain dominated
with expiry, it is likely to see a range session with some amount of volatility
ingrained in it. However, it is best advised to avoid creating any short
positions. Sectoral out performance would continue and it is advised to have
very select and stock specific approach while protecting profits vigilantly at
higher levels.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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