MARKET REPORT November
05, 2014
The Markets remained closed on Thursday, November 6th
. On November 5th, the session remained more or less on expected
lines wherein the Markets consolidated and ended the day with minor gains. The
Markets saw positive opening it remained in positive territory throughout the
session. The Markets saw a relatively quiet opening and soon traded positive
with minor gains. The Markets, while maintaining these modest gains, spent most
part of the session in a very narrow 25-odd points range. In the afternoon
trade, the Markets saw some pressure coming in as it pared all of its gains to
trade flat. However, the late afternoon trade saw minor spike which took the
Markets to its intraday high of 8365.55. It came off a bit again but finally
managed to end the day at 8338.30, posting a minor gain of 14.15 points or
0.17% while forming a mildly higher top and higher bottom on the Daily Bar
Charts.
MARKET TREND FOR FRIDAY, NOVEMBER 07, 2014
Markets shall once again open while adjusting itself with
global activities and there are chances that we may see a quiet opening once
again. There are also chances that the Markets continue to consolidate while
exposing itself to some pressure from higher levels. Therefore, the analysis
would remain more or less on similar lines that of last two trading sessions.
The levels of 8365 and 8390 would act as resistance and the
levels of 8270 and 8215 would act as immediate supports.
The RSI—Relative Strength Index on the Daily Chart is
71.6069 and it has formed a fresh 14-period high which is bullish. However, it
certainly remains in ‘overbought’ territory and also does not show any bullish
or bearish divergences. The Daily MACD remains bullish while trading above its
signal line.
On the derivative front, the NIFTY November futures have
added yet another 12.76 lakh shares or 5.96% in Open Interest. This certainly
exhibits bullish bias of the Markets and may prevent any correction from higher
levels and reduce it to mere sideways consolidation.
Taking a look at pattern analysis, the Markets continue to
test the upper rising trend line of the broadening formation that is seen on
both Daily and Monthly Charts. As mentioned in our previous editions, such
formations are least useful in achieving breakouts due to its nature and thus
an area pattern is required after which the Markets usually takes a further
directional call.
Overall, given the overall structure of the Markets, the
Markets would still not witness any runaway rise due to the pattern structure
and also due to the fact that it remains overbought. However, instead of a
correction from higher levels, it can end up just consolidating in a ranged
manner. Volatility may persist and there are bright chances that the defensives
may outperform during this time. Therefore, while continuing stock specific
approach, positive outlook 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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