MARKET REPORT December
24, 2014
The Markets traded perfectly on expected lines as it halted
its 3-day gaining streak and ended the day with modest losses while taking
support on its 50-DMA levels. The Markets saw a quiet opening and soon gained
strength and continued with its up move in the morning trade. It was in morning
session that it formed its day’s high of 8364.75. The morning session saw the
Markets then trade with capped gains. The second half of the session saw
expected profit taking from higher levels as the Markets rapidly lost ground.
It pared its morning gains and went further into negative to form the day’s low
of 8252.85 losing more than 100-odd points from the high point of the day. It
saw some minor recovery but it finally ended the day at 8267, posting a net
loss of 57 points or 0.68% while still forming a slightly higher top and higher
bottom on the Daily Bar Charts.
MARKET TREND FOR WEDNESDAY, DECEMBER 24, 2014
This session remains crucial for the Markets. First, we have
a truncated week with Thursday being a holiday on account of Christmas; and
second, because of this, we have a expiry coming up a day ahead. Keeping
technicals in view, the Markets are again likely to witness a quiet opening and
might trade range bound in initial trade. The levels of 50-DMA, 8254, would be
crucial and the Markets should trade above that to avoid any weakness from
creeping in again.
The levels of 8295 and 8360 would act as immediate
resistance. The levels of 8254 would act as immediate support at Close levels.
The RSI—Relative Strength Index on the Daily Chart is 47.95
and it remains neutral as it shows no bullish or bearish divergence or any
failure swing. The Daily MACD continues to trade bearish as it trades below its
signal line but is attempting a positive rollover in coming sessions after
getting flattened out.
On the derivative front, NIFTY December futures shed over
45.90 lakh shares or 25.58% in
Open Interest. The January series added over
51.53 lakh shares or 47.76% in OI. The rollovers continued and remained in line
with its previous 3 months average.
Going by the pattern analysis, as we had mentioned in our
previous edition of Daily Market Trend Guide, the Markets have consolidated after
nearly 360-odd points of pullback. Also, as expected, it has attempted to take
support at its 50-DMA levels. It would be of key importance for the Markets to
maintain levels above its 50-DMA. So
long as it remains above 50-DMA levels, it would consolidate and once again
attempt to continue with its pullback.
Overall, being expiry day, the session is likely to remain
dominated with rollover centric
activities. The volumes have remained on much lower side and this is
good in case of downsides. Any up move will have to be accompanied with good
participation. The 50-DMA would be crucial to be watched out for and it would
be imperative for the Markets to trade and maintain itself above that. Overall,
while maintaining controlled exposure, 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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