MARKET REPORT October
23, 2014
The Markets traded for a
Mahurat session on Thursday, 23rd of October for an hour and
spent the hour of the trade on expected lines. The Markets saw a positive
opening and after opening in the positive, the Markets traded for entire hour
in a sideways trajectory. In the first quarter of the hour of trade, the Markets touched the day’s high of 8031.75.
Thereafter, after spending the rest of the time in a sideways trajectory, it
came off a bit from those levels. The Markets finally ended the day at 8014.55,
posting a net gain of 18.65 points or 0.23% while forming yet another higher
top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR MONDAY, OCTOBER 27, 2014
The Markets have formed minor gaps in the previous two
sessions and this may act in either way so far as Markets performance is
concerned. It can either lend technical strength to the Markets, or may cause
the Markets to consolidate in order to fill those gaps. However, with the
global markets stable, we can expect a positive opening in the Markets
initially but at the same time cannot rule out the possibility of some consolidation
in immediate short term.
The levels of 8045 and 8080 would act as resistance and the
levels of 7974 and 7940 would act as supports.
The RSI—Relative Strength Index on the Daily Chart is
56.0749 and it has reached its highest value in last 14-days which is bullish.
Though it does not show any bullish or bearish divergences. The Daily MACD is
bullish as it trades above its signal line. A rising window
occurred (where the top of the previous
shadow is below the bottom of the current shadow). This usually implies a continuation of a
bullish trend. There have been 11 rising
windows in the last 50 candles--this makes the current rising window
even more bullish. However, the formation of such candle can be attributed to a
very short session of trade. On the Weekly Charts, the Weekly RSI is 64.2845
and it remains neutral without showing any bullish or bearish divergences or
any failure swing. The Weekly MACD remains bearish while trading below its
signal line.
On the derivative front, the NIFTY October
futures have shed over 1.47 lakh shares or 0.86% in Open Interest. In the
coming week, this standalone figure would be of little use as it would be a
expiry week and rollovers would begin across segments.
Coming to pattern analysis, the Markets continue
to remain in a broad trading range. It has taken support on 100-DMA twice and
on Thursday, also attempted to move past the levels of 50-DMA. In event of any
consolidation, the levels of 50-DMA should act as support at Close. Reading the
Daily Charts along with the Weekly Charts, there are fair chances that the
Markets continue to remain in a broad trading range while consolidating with
some amount of volatility ingrained in it.
Overall, Markets may witness some ranged
movement and might also see some profit taking from higher levels. Any up move
should be continued to be utilized to protect profits. Stock specific purchases
may be made as secotoral rotation and out performance would continue. Positive
outlook with a tinge of caution 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
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