MARKET REPORT November
18, 2014
The Markets it fresh lifetime highs again but at the same
time continued to consolidate as well fiercely as it ended the day with minor
losses. The Markets opened modestly positive as expected and surged ahead
forming fresh lifetime and intraday high of 8454.50 in the late morning trade.
However, the Markets halted its up move at this point and started to pare its
gains slowly again. By afternoon trade, it had pared all of its morning gains
and traded flat. By late afternoon trade, it saw some more weakness creeping in
as it dipped into the negative and formed a intraday low of 8407.25. These
losses too were recovered as the Markets slowly recovered from the low point of
the day. It finally ended the day at 8425.90, posting a nominal loss of 4.85
points or 0.06% higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR WEDNESDAY, NOVEMBER 19, 2014
Though the Markets are displaying phenomenal strength, it is
fiercely consolidating in sideways trajectory. Given this, we can once again
expect a quiet opening in the Markets and expect the Markets to consolidate in
a ranged manner. In event of any up move, pressure from higher levels cannot be
ruled out and therefore, the analysis continues to remain more or less on
similar lines.
The levels of 8460 and 8490 would act as immediate
resistance. The supports come in much lower at 8270 and 8215 levels.
The RSI—Relative Strength Index on the Daily Chart is
73.3372 and it is neutral as it shows no bullish or bearish divergences or any
failure swings. It also continues to trade in “overbought” territory. The Daily
MACD continues to remain bullish while trading above signal line.
On the derivative front, NIFTY November futures have over
1.94 lakh shares or 0.85% in Open Interest. This suggests some minor reduction
of long positions and some amount of profit taking.
Going by the pattern analysis, as we have been mentioning in
our previous editions of Daily Market Trend Guide, the Markets have been
fiercely resisting to the upper rising trend line of the broadening formation,
which is seen more clearly on Weekly Charts. Usually in such circumstances, the
Markets can witness some sharp profit taking bouts from higher levels even if
the under current certainly remains buoyant.
All and all, under such technical structure, it is advised
to approach Markets on a very cautious note. It is very strongly recommended to
keep overall exposure limited and cash should be preserved. Though purchases
may be made, but it should be done on highly selective basis. Overall more
emphasis should be laid on protecting profits at higher levels as profit taking
bouts from higher levels cannot be ruled out. Overall, continuance of cautious
approach 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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