MARKET REPORT November
11, 2014
Markets consolidated for the fifth day in a row as it moved
in a capped range and ended the day with minor gains after good amount of
volatility. The Markets saw a positive opening and after opening positive, it
went on to form the day’s high of 8378.70 in the morning trade itself. However,
as expected, the Markets saw some selling pressure at higher levels. It not
only pared its gains gradually but went on to dip in the negative in the
afternoon trade while forming it’s day’s low of 8321.85. However, the remaining
second half of the session was spent recovering from the day’s low. The Markets
did manage to recover its losses and went back to trade in the positive
territory. It finally ended the day at 8362.65, posting a minor gain of 18.40
points or 0.22% while forming a slightly higher top and bottom on the Daily Bar
Charts.
MARKET TREND FOR WEDNESDAY, NOVEMBER 12, 2014
The Markets are again likely to see modestly positive
openings today and there are chances that the Markets attempts to inch upwards.
However, with the Markets remaining in “overbought” zone for a while now, any
attempt to up move can meet selling pressure at higher levels and reduce an
upward move to ranged consolidation.
The levels of 8375 and 8420 would continue to act as
probable resistance levels as the Markets would then trade in uncharted
territories. The supports would exist at 8270 and 8215 levels.
The RSI—Relative Strength Index on the Daily Chart is
72.6228 and it has reached its highest value in last 14-periods which is
bullish. It does not show any bullish or bearish divergence and it also trades
in “overbought” territory. Daily MACD remains bullish while trading above its
signal line.
On derivative front, the NIFTY November futures have added
70,150 shares or minor 0.30% in Open Interest. This can be interpreted as no
major shifting of positions on either side has been witnessed. No major unwinding
or creations of fresh positions have been observed.
Looking at pattern analysis, the Markets have been severely
consolidating near the upper rising trend line of the broadening formation on the
Daily as well as Weekly Charts. Normally one can interpret this as extremely
bullish in the immediate short term but it also has to be kept in mind that the
Markets are “overbought” and this can prevent any runaway rise and can also
cause some selling pressure at higher levels.
Overall, there are chances that the Markets continues to
attempt its up move and in the process severely consolidates as it has been
doing since last 5 sessions. It is advised to utilize any up move to protect
profits on long positions. Fresh purchases should be extremely stock specific
with more emphasis on defensive and other sector specific stocks. Though under
current certainly remains intact, 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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