We
have not been able to come up with regular edition of Daily Market
Trend Guide in PDF Format. Brief Market Forecast for the Day is given
below. Inconvenience caused is sincerely regretted.
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BRIEF MARKET FORECAST FOR THE DAY, WEDNESDAY, JANUARY 07, 2015
Markets
saw their steepest fall since last 65 months as it ended the day with
deep cut of 3% as it ended the day at 8127.35. Today, expect the Markets
to open on a flat to mildly positive note and attempt some pullback.
Technically speaking, there should be some resistance to the downside as
the Markets have taken support at its 100-DMA.
The
most artificial and shady behavior of the Markets is in the fact that
that during the pullback, it resisted for couple of days to its 50-DMA
and then went on to move past it. On its way down, it completely
disregarded this 50-DMA level which should have otherwise acted as
support under normal circumstances.
Given
this fact, even if we see some downside, shorts should be strictly
avoided. Such nasty behavior of the Markets have provided an opportunity
to make selective purchases. However, given the external factors
liquidity should be maintained and exposure should be controlled.
Overall, some pullback should be expected with the levels of 8127, i.e.
100-DMA should be critically watched for.
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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