MARKET REPORT January
01, 2015
The Markets ended the year 2014 on a positive note and
continued to close with modest gains. The Markets saw a flat opening and post
flat opening the Markets saw itself strengthening a bit by the late morning
trade. However, once again, the Markets traded with much capped gains and in a
narrow range while it continued to drift from its morning gains. The second
half of the session saw the Markets inching upwards again. It attempted to move
past its 50-DMA levels while it formed its intraday high of 8291, though it
resisted there. These levels were maintained as the Markets ended the day at
8282.70, posting a net gain of 34.45 points or 0.42% while forming slightly
higher top and higher bottom on the Daily Bar Charts. So far as year 2014
goes, the NIFTY gained 31.40% posting its best gain since 2009.
MARKET TREND FOR THURSDAY, JANUARY 01, 2015
The Markets would continue to witness a typically holiday
affected session once again as the Markets are likely to remain in slumber as
they have been doing since last couple of sessions. We can expect a quiet
opening and we would continue to see the levels of 50-DMA being the crucial
levels to watch out for. In case of higher opening, the Markets will have to
make sure to maintain itself above the 50-DMA levels in order to avoid
remaining in sideways consolidating range.
The levels of 8290 (in case of opening lower than this
level) and 8365 would act as immediate resistance. The supports come in at 8148
and 8100 levels.
The RSI—Relative Strength Index on the Daily Chart is
50.2596 and it remains neutral as it shows no bullish or bearish divergence or
failure swings. The Daily MACD remains bearish trading below its signal line
but at the same time it is slowly but steadily moving towards giving a positive
crossover.
On the derivative front, the NIFTY January futures have shed
over 1.48 lakh shares or nominal 0.69% in Open Interest. This shows very mild
profit taking ahead of a year close but certainly this figures remains an
insignificant one.
Going by trend and pattern analysis, the Markets, as we have
been mentioning in our previous couple of editions of Daily Market Trend Guide,
has been resisting to its 50-DMA levels while attempting a pullback after
making recent lows in mid December. It would be necessary for the Markets to
move past these levels with conviction in order to successfully continue with
the up move. However, the Markets are seeing some listless sessions due to lack
of participation on account of year end holidays.
Overall, the trend continues to remain intact. We would see
some good gains if the Markets moves past its 50-DMA and stays about that level
in the immediate short term. However, we may see some listless activity due to
holidays and therefore see some real momentum coming in the Markets only from
next week. However, while maintaining adequate liquidity, cautious optimism 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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