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
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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