MARKET REPORT October
31, 2014
The Markets had an spectacular start to the November series
as it staged a fresh breakout above its previous decisive highs of 8180 levels
as it ended the day with robust gains. The Markets saw strong and positive
opening and remained in positive rising trajectory throughout the session.
After opening positive, the Markets kept getting stronger and gradually kept making
fresh intraday highs. After maintaining strong gains in the first half of the
session, the Markets got further strength coming in in the second half of the
session. The Markets perked up further and formed its fresh intraday high of
8330.75 in the final minutes of the trade. These gains too were maintained and
the Markets finally settled the day at 8322.20, posting a robust gain of 153
points or 1.87% while forming a sharply higher top and higher bottom on the
Daily Bar Charts.
MARKET TREND FOR MONDAY, NOVEMBER 03, 2014
The Markets are once again likely to face a critical session
ahead. The Markets have given a breakout from its previous highs and have ended
the day near the highest point. Technically speaking, the Markets should open
higher and continue with its up move at least in the initial trade. Also important
is the fact that the Markets may face consolidation at higher levels as it
might resist to the rising trend line as evident from the Daily and Weekly
Charts.
The levels of 8340 and 8365 may act as resistance levels
whereas the levels of 8270 and 8210 would be immediate supports.
The RSI—Relative Strength Index on the Daily Chart is 70.9861
and it has reached its highest value in last 14-periods and this is bullish.
However, it does not show any bullish or bearish divergence and trades in
Overbought zone. The Daily MACD remains positive while trading above its signal
line. On the Weekly Charts, Weekly RSI is 70.3522 and this trades in Overbought
zone. Further, the NIFTY has made a fresh 14-peiod high but Weekly RSI has not
and this implies Bearish Divergence on Weekly Charts. The Weekly MACD remains
bearish trading below its signal line.
On the derivative front, NIFTY November futures have added
22.09 lakh shares or 11.89% in Open Interest. This is certainly a positive
reading and implies fresh robust creation of long positions.
Looking at the pattern analysis, the Markets have once again
touched the upper rising trend line of the broadening formation on Daily as
well as Weekly Charts. This may cause the Markets to resist and also consolidate
at higher levels. Further , it may also expose the Markets to intraday profit
taking spikes but overall, might continue to trade with upward bias.
All and all, the Weekly Charts of the Markets depict some
short term chances of consolidation at higher levels. In case of positive
opening, there are chances that the Markets see some minor profit taking at
higher levels and force itself to some consolidation. The Markets have entered
into Overbought territory and therefore with every subsequent up move, profits
on long positions should be vigilantly guarded. Overall continuance of 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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