Wednesday, December 10, 2014

Daily Market Trend Guide -- Thursday, December 11, 2014

MARKET REPORT                                                                    December 11, 2014
The Markets snapped its three day losing streak and ended the day with nominal gains while it recovered from its one-month lows. The Markets opened on a modestly negative note as expected and traded the morning session in a very capped range. It saw itself slipping in the red while it formed the day’s low of 8317 in the late morning trade. However, the Markets saw itself recovering from the low point of the day. It recovered from the intraday lows to trade back into the positive territory. The mid-afternoon trade once again saw paring of gains. Volatility refused to go away as some pullback was seen as the Markets went on to form the day’s high of 8376.80. These levels too were not sustained and the Markets came off a bit from here as well. It  finally ended the day at 8355.65, posting a nominal gain of 14.95 points or 0.18% while continuing to form a lower top and lower bottom on the Daily Bar Charts.


MARKET TREND FOR THURSDAY, DECEMBER 11, 2014

The analysis for the day continues to remain more or less on similar lines once again. We have seen the fall in the Markets being arrested and some attempts to find some intermediate bottom. Expect the Markets to open on a modestly positive note and attempt with its pullback. However, selling from higher levels still cannot be ruled out as the Markets are yet to form a higher top and higher bottom on the Daily Charts. Volumes and intraday trajectory would form critical cues for the day’s session.

The levels of 8385 and 8450 would act as immediate resistance for the Markets. The supports would come in at 8315 and 8260 levels. 

The RSI—Relative Strength Index on the Daily Chart is 47.0819 and it is neutral as it shows no bullish or bearish divergence or failure swings. The Daily MACD is bearish as it continues to trade below its signal line. 

On the derivative front, NIFTY December futures have seen open interest declining by over 1.49 lakh shares or nominal 0.67%. This figure is insignificant and overall good amount of open interest still continue to exist in the system.

Returning to pattern analysis, the Markets have seen paring of gains after it resisted to upper rising trend line and has thus made an intermediate top. It has continue to form lower tops and lower bottoms after that and now trades in vicinity of its 50-DMA. Any further downside will make the Markets test its 50-DMA levels at Close. However, the short that exists in the system are likely to lend support from now on.

Overall, as mentioned in our previous edition of Daily Market Trend Guide, the Markets have not shown any structural breach as it continues to trade above all of its moving averages. Though technical pullback is likely, it is advised to continue to tread the Markets cautiously. It is advised to continue to maintain liquidity and refrain from taking over-exposure in the Markets. Overall, 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
+91-98250-16331

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