MARKET REPORT November
26, 2014
The Markets had a volatile session which is usually typical
of rollover activities as it swung on either side before ending the day with
nominal gains. The Markets saw a very quiet and flat opening. However, after
opening on a quite note, the Markets slipped gradually in the morning trade to
form the day’s low of 8438.65. It did not breach this level and spent the first
half of the session in a ranged movement. It was in the second half when the
Markets recouped its losses and managed to trade flat again. It saw further
strength coming in as it went on to post the day’s high of 8500.30 recovering
nearly 60+points from its intraday low. The last hour of the trade saw some paring
of gains again from the day’s high point. The Markets finally ended the day at
8475.75, posting a nominal gain of 12.65 points or 0.15% while forming a lower
top but slightly higher bottom on the Daily Bar Charts.
MARKET TREND FOR THURSDAY, NOVEMBER 27, 2014
Analysis remains more or less on similar lines once again as
the Markets fiercely continue to consolidate above the rising trend line which
is evident on the Daily Charts. We can once again expect a very quiet opening
in the Markets and the levels of 8440 would remain critical levels for the
Markets. It would be important and necessary for the Markets to trade above this
level in order to avoid any weakness creeping in.
The levels of 8500 and 8535 acts as immediate resistance and
the levels of 8440 and 8310 would act as immediate supports.
The RSI—Relative Strength Index on the Daily Chart is
67.6774 and it is neutral as it shows no bullish or bearish divergence or any
failure swing. The Daily MACD remains bullish as it trades above it signal
line. However, if the Markets continue to consolidate without registering any
significant gains, we may see Daily MACD posting a negative crossover.
On the derivative front, NIFTY and Marketwide rollovers
continued which remained above its 3-month series average. The NIFTY November
futures shed over 36.29 lakh shares or 27.82% in Open Interest whereas the
December series added over 44.96 lakh shares or 38.28% in Open Interest.
Going by the pattern analysis, the Markets have been
fiercely consolidating along the rising trend line as very much evident on the
Daily Chart. On the Weekly Charts, this translate into a distinct broadening
formation and it would be very necessary for the Markets to give a clear
breakout in coming days. Failure to do so would invite some short term weakness
in the Markets. The level of 8440 would remain important as any dip below this
level will induce some short term weakness in the Markets.
Overall, we reiterate our view to curtail over exposure in
the Markets. Any purchases, as we have been maintaining in our previous
editions, should be extremely stock specific. The session is also likely to
remain dominated with rollover centric activities. While continuing to protect
profits at higher levels, cautious 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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