MARKET REPORT October
28, 2014
The Markets had an overall positive session and ended the
day with modest gains but still the overall trading range continued to remain
capped. The Markets opened on a positive note on expected lines but after
opening positive, it gradually pared nearly all of its gains by afternoon
trade. Though the Markets continued to trade positive and never dipped into the
negative territory the gains remained almost negligible until afternoon trade. It
was only in the second half of the session that the Markets attempted to gain
strength. Markets saw some strength coming in and it not only went back to
their morning highs, but also went past those levels to form a intraday high of
8037.80. Again some consolidation was seen around those levels but the Markets
finally ended the day at 8027.60, posting a net gain of 35.90 points or 0.45%
while forming a lower top but nearly similar bottom on the Daily Bar Charts.
MARKET TREND FOR WEDNESDAY, OCTOBER 29, 2014
The Markets have continued to remain in consolidation mood
and have traded more or less in a capped range. However, given the technicals
and this being supported by minor external factors and stable global Markets,
there are chances that we see a modestly positive opening. However, the trade
is more or less expected to remain within a given range. Further, tomorrow
being the penultimate day of expiry of current series, rollovers would continue
to dominate.
The levels of 8065 and 8090 would act as resistance and the
levels of 7955 and 7910 would act as supports.
The RSI—Relative Strength Index on the Daily Chart is
56.6223 and it has reached its highest value in last 14-periods which is
bullish. There are no bullish or bearish divergences that are seen as such. The
Daily MACD remains bullish trading above its signal line.
On the derivative front, NIFTY October futures have shed
over 23.19 lakh shares or 14.53% in Open Interest whereas the November series
have added over 56.82 lakh shares or over 147.99% in Open Interest. Overall,
there has been net open interest addition and therefore creation of fresh longs
can fairly be assumed.
Coming to pattern analysis, as we have been mentioned in our
couple of previous editions, the Markets have been trading in a broad trading
range with the levels of 50-DMA expected to act as supports. Until the Markets
remain above its 50-DMA, it would remain in consolidation and broad trading
range with upward bias.
Overall, since the expiry is approaching and with just two
sessions to go, we can also expect some amount of volatility ingrained in the
Markets. Stock specific purchases can certainly be made while vigilantly
protecting profits at higher levels. Overall, continuance of cautious optimism
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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