MARKET REPORT November
27, 2014
The Markets had a volatile expiry as the Markets moved in
either direction before closing just a notch below 8500 levels while
registering minor gains. The Markets saw a modestly positive opening and after
this saw a range bound trade in the morning session before it slipped into the
red. By afternoon trade, the Markets slipped further in to the negative
territory while it formed the day’s low of 8456.35. However, it was in the
second half of the day when volatility creped in. The Markets saw a sudden
spurt from the low point of the day as it not only revered all of its losses
from lower levels but also traded in to the positive territory. It further went
on to form the day’s high of 8506.75 towards the end of the session. It finally
settled the day at 8494.20, posting a minor gain of 18.45 points or 0.22% while
forming a mildly higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR FRIDAY, NOVEMBER 28, 2014
The Markets continue to heavily consolidate sideways along
with rising upper trend line as evident on the Daily Charts and this makes the
analysis to continue to remain on similar lines as it was in last couple of
sessions. We can again expect a quiet opening in the Markets and it would be important
for the Markets to trade above 8440 levels in order to avoid any weakness.
The levels of 8500 and 8540 would act as resistance while
the supports would come in at 8440 and further down at 8340 levels.
The RSI—Relative Strength Index on the Daily Chart is 68.7671
and it continues to remain neutral as it shows no bearish or bullish
divergences or any kind of failure swing. The Daily MACD continues to remain
bullish as it trades above its signal line. However, it has flattened out and
may post negative crossover in event of any weakness.
On the derivative front, NIFTY December futures have added
over 46.99 lakh shares or 28.94% in Open Interest. It signifies some good
amount of fresh long positions created. The rollovers in NIFTY and Stocks have
remained above its 3-Month series average.
Going once again by pattern analysis, the Markets is moving
across the upper trend line of the broadening formation. The Markets certainly
remains at a critical juncture and it will have to continue to maintain levels
above of 8430 in order to avoid any weakness creeping in. Any dip below this
level would induce some short term weakness in the Markets.
Overall, it is important to understand that the Markets are
not completely out of the woods. It has been posting fresh highs but clear
breakout is not achieved which is very typically seen in such patterns. Until
clear breakout is achieved there are always theoretical chances some
correction. There are chances that we might continue to see pressure from
higher levels and therefore it is advised to continue with the policy of
controlled exposure and caution in the Markets 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
