MARKET REPORT December
31, 2014
The Markets continued to trade on lower volumes reflecting
typically holiday affected session as it moved in 30-odd points during the
entire session and ended the day on a flat note. The Markets saw a modestly
positive opening and it formed its intraday high of 8268.25 in the early
morning trade. After trading with extremely capped gains, the Markets drifted
into negative territory. It spent most part of the remaining session in a
negative territory trading with very modest losses. It formed the intraday low
of 8220.55 in the late afternoon trade. However, the late afternoon trade also
saw sharp recovery coming in from lower levels as the Markets recouped all of
its losses to trade modestly into positive. It finally ended the day at
8248.25, posting flat close with nominal gain of 1.95 points or 0.02% while forming
a parallel bar on the Daily Bar Charts.
MARKET TREND FOR WEDNESDAY, DECEMBER 31, 2014
Markets have traded nearly on dotted lines have been seeing
sessions typically affected by holiday season. Such sessions are characterized
by very low participation and sedate volumes. While keeping the analysis more
or less on similar lines, the Markets are again likely to see modestly positive
opening. At the same time, the levels of 50-DMA which has continued to act as
resistance at Close levels would be important levels to watch out for.
The levels of 8280 and 8345 would act as immediate
resistance levels while the levels of 8220 and 8160 would act as immediate supports.
The RSI—Relative Strength Index on the Daily Chart is
47.8140 and it continues to remain neutral while showing no bullish or bearish
divergences or failure swings. The Daily MACD remains bearish while trading
below its signal lines.
On the derivative front, the NIFTY January futures have
added another over 2.20 lakh shares or 1.04% in Open Interest. This shows that
there have been less, but some modest buying that is being witnessed from lower
levels.
While having a look at pattern analysis, the Markets are
attempting a pullback after a sharp decline from a broadening formation on the
Daily Charts. The Markets have been attempting a pullback since last several
sessions since December 17th, but in the process has been witnessing
some resistance by its 50-DMA levels. This level is acting as a resistance, a
support the Markets broke while on its way down.
Overall, though it would be necessary for the Markets to
move past the levels of 50-DMA and above, the chances of this happening are
higher as supported by F&O data. Until this happens, this level would be
critically to watch out for. Again, once can certainly continue to make very
selective purchases as stock specific action would continue.
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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