MARKET REPORT December
01, 2014
The Markets halted its three-day gaining streak as caution
reigned in ahead of RBI Credit Policy tomorrow. The Markets saw positive
opening and after trading flat in the initial trade, strengthened further to
post the day’s high of 8623 in the late morning trade. However, it retreated in
the remaining part of the session. After posting this fresh lifetime high, the
Markets saw slow paring of gains in the first half of the session. It traded
flat by afternoon as it pared all of its morning gains. The late afternoon
trade saw some pressure coming in, as such on expected lines, as the Markets
dipped into the negative. It weakened further as it went on to form the day’s
low of 8545.15. It came off nearly 80-odd points from the high point of the day
and finally settled at 8555.90, posting a net loss of 32.35 points or 0.38%
while continuing to form higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR TUESDAY, DECEMBER 02, 2014
The Markets continue to remain at critical juncture. We can
expect a flat opening tomorrow and may trade in a capped range ahead of RBI
Announcements and react to it after that. As such no rate cuts are expected but
it would be technically important for the Markets to trade above 8540 levels.
If it dips below this, it may induce some short term weakness in the Markets.
The levels of 8600 and 8630 would act as immediate
resistance. The supports come in at 8540 and further down at 8430 levels.
The RSI—Relative Strength Index on the Daily Chart is
69.6175. It has moved below from topping formation and this is bearish. It
otherwise remains neutral with no failure swings or any bullish or bearish
divergence. The Daily MACD continues to trade above it signal line.
On the derivative front, the NIFTY December futures have
shed over 2.69 lakh shares or 1.21% in Open Interest. This signifies some
unwinding of long positions from higher levels.
Going by the pattern analysis, the Markets have taken a very
immediate support on the rising trend line that it attempted to break on the
upside. However, any dip below the levels of 8540 is likely to induce some
immediate weakness in the Markets. The lead indicators, read along with F&O
data show some tilt towards this situation.
Overall, we continue to reiterate caution in the Markets.
Given the current state of Technical Charts, its lead indicators, derivative
data, it would be absolutely wise to concentrate on protecting current profits.
While keeping purchases very limited and highly selective, liquidity should be
maintained as selling bouts and minor but sharp cannot be ruled out even if we have
the overall trend intact.
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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