MARKET REPORT November
25, 2014
The Markets saw some correction setting in after opening
levels as it ended the day with modest losses. The Markets saw a quiet and
sedate opening but after opening flat to modestly negative, it settled itself in
the negative territory. For the entire session, the Markets never really traded
positive even once. Once slipped into negative territory post opening, it kept
itself in falling trajectory for the entire session. It kept losing ground
gradually and in the late afternoon trade, went on to form the day’s low of
8429.45. The Markets briefly traded around these levels but it also saw some
minor recovery towards the end. It finally settled the day at 8463.10, posting
a net loss of 67.05 points or 0.79% while forming a similar top and lower
bottom on the Daily Bar Charts.
MARKET TREND FOR WEDNESDAY, NOVEMBER 26, 2014
The Markets are again poised at a critical juncture and the
opening of the Markets would be very critical to decide the trend for immediate
short term. The Markets have attempted a breakout and have closed just above
its rising trend line. The Markets may see a modestly positive opening. It
would be critically important for the Markets to open and trade above 8430. Any
dip below 8430 can induce short term weakness in the Markets.
The levels of 8450 and 8475 can act as resistance. Supports
come in at 8430 and further down at 8310 levels.
The RSI—Relative Strength Index on the Daily Chart is
66.9430 and it has just crossed below from a topping formation. It has also
reached its lowest value in last 14-days which is bearish. Further, the RSI has
made a fresh 14-period low but NIFTY has not yet and this is Bearish
Divergence. The Daily MACD still maintains its bullish condition while trading
above its signal line.
On the derivative front, NIFTY November futures shed over
58.59 lakh shares or 30.99% in Open Interest while December futures have added
56.88 lakh shares or 93.93% in Open Interest. This being the expiry week,
rollovers were clearly seen in NIFTY and stocks.
Going by the pattern analysis, the Markets have attempted a
break out but has not yet confirmed it. Trading above the levels of 8430 would
be critically important for the Markets.
Even if the Markets see a up move and
sees some selling pressure again, it would be really important for the Markets
to trade above 8430 levels. Any dip below 8430 levels can induce short term
weakness in the Markets.
Overall, the lead indicators suggest that the Markets may
continue to see some selling pressure from higher levels. Given this reading,
it is advised to refrain from any aggressive positions. Extensive exposures
should be avoided and existing profits should be vigilantly protected. While
maintaining adequate liquidity and cash, 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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