Thursday, September 25, 2014

Daily Market Trend Guide -- Thursday, September 25, 2014



MARKET REPORT                                                                                     September 24, 2014

The Markets had a consolidating session once again as it spent the entire day in a tight and narrow range and ended the day with nominal losses. The Markets opened on a quiet note and traded briefly in the positive territory while it formed its day’s high of 8042.05 in the early minutes of the day. However, the Markets soon drifted in the red thereafter and then spent most part of the session in the negative territory. A mild attempt was seen in the late morning trade wherein the Markets recovered its losses to trade briefly in the green but slipped again to form the day’s low of 7950.05 in the late afternoon trade. The Markets hovered in a narrow range of 30-odd points throughout the day and finally managed to end the day at 8002.40, posting a net loss of 15.15 points or 0.19% while continuing to form a lower top and lower bottom on the Daily Bar Charts.



MARKET TREND FOR THURSDAY, SEPTEMBER 25, 2014


Today, expect the Markets to open mildly on a positive note and trade positive initially. Also, today is the expiry day of the current derivative series and therefore the session would remain undoubtedly remain dominated with rollover centric activities. The volatility is likely to stay and the Markets are likely to remain in a broad trading range with no signs of upward breakout on a significant basis.


The levels of 8040 and 8080 would act as resistance. The supports would come in at 7950 and 7870 levels.


The RSI—Relative Strength Index on the Daily Chart is 50.7808 and it remains neutral as it shows no bullish or bearish divergence or any failure swing. The Daily MACD remains bearish as it trades below its signal line. 


On the derivative front, rollovers continued as NIFTY September futures shed over 20.39 lakh shares or 20.16% in Open Interest whereas the October series added over 25.36 lakh shares or 25.84% in Open Interest. The NIFTY PCR stands at 0.87 as against 0.89 a day before.


Taking a look at the pattern analysis, as evident from the Charts, the Markets have chose to remain within a broadening formation which began to develop from the Month of June. Though such pattern has a very less frequent occurrence, the Markets still remain within this broad formation while failing to breach the upper boundary line twice. Though the third wave in this formation is  bit extended, it still remains within this formation.


Overall, the Markets might see some technical pullback and trade positive initially but overall bias still remains on the possibilities of consolidation continuing. Even with the under current remaining intact, the Markets may witness selective sell offs and would attract buying in selective quality non-index stocks as  stock specific sectoral out performance is likely. Overall, controlled leverage with very selective exposure is advised.


Milan Vaishnav,

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




No comments:

Post a Comment

Note: Only a member of this blog may post a comment.