MARKET REPORT December
29, 2014
The Markets had a sedate session on Friday after a Christmas
holiday as it spent the most part of the session in sideways trajectory but
ended the day with modest gains. The Markets saw a positive opening and it soon
formed its intraday high of 8234.55 in the early minutes of the trade. It soon
pared its gains to trade flat near its previous close. It spent the most part
of the session thereafter moving in a sideways trajectory moving in a very
narrow range. It continued to hover in the 20-odd points range until the late
afternoon trade. The Markets saw some upside towards the end of the session and
finally settled the day at 8200.70, posting a modest gain of 26.60 points or
0.33% while forming a slightly lower top and lower bottom on the Daily High Low
Charts.
MARKET TREND FOR MONDAY, DECEMBER 29, 2014
The Markets are likely to see quiet to mildly positive
opening again but overall, it is likely to continue with a sedate performance
on lower volumes due to year-end holidays. The levels of 50-DMA would be
important and it would be critically important for the Markets to move past the
50-DMA levels in order to continue with its pullback.
The levels of 8264 and 8290 would act as immediate
resistance whereas the levels of 8150 and 8100 would act as immediate supports.
The RSI—Relative Strength Index on the Daily Chart is
44.6264 and it remains neutral as it shows no bullish or bearish divergence or
failure swings. The Daily MACD continues to remain bearish while trading below
its signal line. On the Weekly Charts, the Weekly RSI is 58.4898 and this too
remains neutral without showing any bullish or bearish divergence or any
failure swings. The Weekly MACD too remains bearish while it trades above its
signal line.
On the derivative front, NIFTY January futures have shed
nominal Open Interest of over 1.47 lakh shares or 0.71%. This shows no major
offloading was witnessed in the previous session.
Going by pattern analysis, there is no major breach on the
Daily as well as Weekly Charts. The Markets have dipped below its 50-DMA and it
will have to move past this level again in order to continue with its pullback.
During the downside, there has been near-absent volumes. The lack lustre
Markets are more due to lack of participation than due to weak technicals.
Overall, one can continue to make very selective purchases.
The volumes are likely to continue to remain thin due to year-end holidays.
However, given everything, the 50-DMA levels would continue to remain crucial
and it would be important for the Markets to move past that level. While overall
trend continuing to remain intact and with no major downside seen, 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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.