MARKET REPORT October
14, 2014
The Markets had a very volatile session on Tuesday wherein
it moved in either direction and traded in a broad trading range while holding
to its important supports and resisting
to its 50-DMA as well on the upper side and ending with modest losses. The Markets
saw a positive opening but formed its intraday high of 7928 in the very early
minutes of the trade. The Markets thereafter soon pared its gains to trade
sideways on a flat note. The late morning trade saw a sharp sell-off again from
those levels as the Markets rapidly lost ground to form the day’s low of
7825.45 losing nearly 100-odd points from its day’s high. However, the levels
of 7800-20 zone continued to act as supports as the Markets recovered from the
lows of the day. It recouped all of its losses and also went into positive
territory for a very brief time. Finally the Markets settled the day at 7864,
posting a net loss of 20.25 points or 0.26% while forming a slightly higher top
and higher bottom on the Daily Bar Charts.
MARKET TREND FOR THURSDAY, OCTOBER 16, 2014
Markets will have a tough day as it will open after a gap of
one day due to trading holiday on account of Assembly Elections in Maharashtra.
The Markets will struggle between digesting global weakness that existed in the
day in between and also positively react to the lower WPI data and possible BJP
Victory in the Maharashtra State Polls.
Owning to this, the Markets may see a positive opening and might extend with
gains. If any lower opening is registered, it would be knee-jerk reaction to
the global weakness and we can certainly see improvement as the day progresses.
The levels of 7920 and 7965 would act as resistance while the
levels of 7800-20 levels would act as supports. Any breach below this would
take the Markets near its 100-DMA.
The RSI—Relative Strength Index on the Daily Chart is
43.8138 and it remains neutral as it shows no bullish or bearish divergence or
any failure swings. The Daily MACD remains bearish as it continues to trade
below its signal line.
On the derivative front, NIFTY October futures have shed
over 1.07 lakh shares or nominal 0.73% in Open Interest. This shows no major
shedding of open interest was observed and the Markets are showing a mixed
directional trend.
Referring to trend and pattern analysis the Markets continue
to trade below its 50-DMA but above its significant support zone of 7800-20
levels. The Markets will have to trade above these levels in order to avoid any
further weakness. Any breach below these levels would take the Markets near its
100-DMA.
Overall, the apart from technical factors and global
weakness, the Markets would also react to the positive macro economic data and
possible BJP win the State Elections of Maharashtra and Haryana. Owing to these
both negative and positive factors we will continue to see volatility ingrained
into the session and the Markets are expected to continue to remain volatile in
a broad trading range. Highly selective purchases may be made while approaching
the Markets with positive caution.
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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