MARKET REPORT November
12, 2014
Markets touched yet another fresh lifetime highs as it moved
passed psychological 8400 mark in the intraday trade. The Markets saw positive
opening on expected lines and after opening positive, the Markets kept making
gradual highs in the morning trade. It went past the psychological 8400-mark to
form the day’s high of 8415.05 in the late morning trade. However, the Markets
saw some resistance coming in as it came off its highs. Markets spent the rest
of the session in slowly paring of gains as it drifted lower. However, gains
were maintained all throughout and the Markets finally ended the day at 8383.30
posting a net gain of 20.65 points or 0.25% while forming a higher top and
higher bottom on the Daily Bar Charts.
MARKET TREND FOR THURSDAY, NOVEMBER 13, 2014
With the Markets fiercely consolidating since last several
sessions, the analysis would remain on similar lines. The Markets may see positive
opening if at all the sentiments are aided by the better IIP numbers and
lowering of inflation but at the same time the overbought nature of the Markets
will make it certainly vulnerable to the pressure from higher levels.
The levels of 8415 and 8440 would act as resistance while
the levels of 8270 and 8215 levels would
continue to act as immediate supports.
The RSI—Relative Strength Index on the Daily Chart is 73.5657 and it has
reached its highest value in last 14-periods which is bullish. However, it does
not show any bullish or bearish divergence and it trades in “overbought”
territory. The Daily MACD continues to remain bullish trading above its signal
line.
On the derivative front, the NIFTY November futures have
added over 5.80 lakh shares or 2.5% in Open Interest. These figures suggest
fresh longs being created. Such action would resist any downside from higher
levels and keep the Markets in consolidation in event of any weakness creeping
in from higher levels.
Looking at pattern analysis, the Markets have been fiercely
consolidating at higher levels on the upper rising trend line of the broadening
formation. Having said this, this can certainly be interpreted as very high
resilience levels and display of very strong undercurrent and strength by the
Markets. This has certainly upward bias but the overbought nature of the
Markets calls for caution at each higher levels.
Overall, keeping in line with the overall analysis over last
couple of days, we would keep the analysis on such similar lines. Though
undercurrent remains certainly strong and buoyant, the overbought markets call
for caution at higher levels. This makes the Markets bit vulnerable at higher
levels and makes it prone to sharp profit taking at any time from such higher
levels. However, given the strong undercurrent, while protecting profits as
usual at higher levels, selective purchases may be made. Continuance of
positive 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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