MARKET REPORT November
19, 2014
The Markets failed to confirm its attempted breakout as it
ended the day with modest losses after trading in sideways trajectory until the
afternoon trade. The Markets saw a positive opening and after opening positive,
it soon formed its intraday high of 8455.65 in the early minutes of the trade.
The Markets thereafter soon drifted on the downside while paring its morning
gains to trade flat. It spent the first half of the session trading near its
previous Close until afternoon. The second half of the session saw the Markets
witnessing some selling pressure and it drifted further into the red. It went
on to form the day’s low of 8360.50 in the last minutes of the session. It saw
a very minor recovery and it finally ended the day at 8382.30, posting a modest
loss of 43.60 points or 0.52% while forming a similar top and lower bottom on
the Daily Bar Charts.
MARKET TREND FOR THURSDAY, NOVEMBER 20, 2014
As it was widely expected due to the overbought nature of
the Markets, it did not give any runaway rise and instead saw some selling
pressure from higher levels. Again, expect the Markets to open on a quiet note
and look for directions. Chances of further consolidation still remains significant
given the technical structure of the Daily Charts. Volatility too would remain
ingrained in coming sessions.
The levels of 8405 and 8450 would act as immediate
resistance and the supports would come in much lower at 8270 and 8215 levels.
The Relative Strength Index on the Daily Chart is 67.4358
and it has just crossed below its topping formation which is bearish. It is
otherwise neutral as it shows no bullish or bearish divergence or any failure
swing. The Daily MACD continues to remain bullish as it trades above it signal
line.
On the derivative front, the NIFTY November futures have
shed over 6.24 lakh shares or 2.76% in Open Interest. This clearly signifies
that there has been some unwinding of long positions from higher levels.
Taking a look at pattern analysis, the Markets shows some
room for some more consolidation at given levels. The Markets may continue to
see selling pressure from higher levels in case of any up move. Though we may
not witness any sharp or deep correction, there certainly appears that the
Markets may continue to see such ranged session with mild correction.
All and all, looking at the technical charts and also taking
a cue from pattern analysis, we may continue to see some selling pressure from
higher levels. However, this would be range bound consolidation as the
undercurrent continues to remain buoyant as the Markets have been showing good
amount of resilience. However, the policy of continuing to protect profits at
higher levels and selective buying while maintaining liquidity 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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