MARKET REPORT February
20, 2015
While trading absolutely on expected lines, the Markets had
an utterly volatile session as it saw wild swings before ending with modest
gains. The Markets saw a modestly positive opening and it traded with capped gains
in the morning trade. However, the afternoon trade saw the Markets slipping in
to the negative territory. It dipped further in the negative after trading with
capped losses in the late afternoon trade as it formed its intraday low of
8794.45. Just when it seemed that the Markets are seeing a decent enough
correction, it saw a very sharp up move in the last hour of the trade. The
Markets not only recouped its losses but traded back into the positive
territory. It further went on to form the day’s high of 8913.45 recovering
nearly 120-odd points from the low point of the day. It finally ended the day
at 8895.30, posting a modest gain of 26.20 points or 0.30% while forming
slightly higher top and similar bottom on the Daily Bar Charts.
MARKET TREND FOR FRIDAY, FEBRUARY 20, 2015
Today, expect the Markets to open on a modestly positive
note and look for directions. The Markets are likely to open and trade positive
in the initial trade but in the same breath, it is likely to continue to see
mild selling pressure and some amount of consolidation on its way up.
Volatility would remain ingrained in the Markets in the immediate short term.
The levels of 8920 and 8965 would act as immediate
resistance for the Markets. The supports would come in at 8790 and 8745 levels.
The RSI—Relative Strength Index on the Daily Chart is
65.2621 and it has reached its highest value in last 14-days which is
bullish. The Daily MACD, as we had expected
in our yesterday’s edition, has reported a positive crossover and it now trades
above its signal line.
On the derivative front, the NIFTY February futures have
shed over 6.76 lakh shares or 2.65% in Open Interest. This make somewhat
evident that the Markets saw some sharp short covering from lower levels
yesterday.
Returning to pattern analysis, the Markets are steadily
inching towards its rising trend line and it will start facing resistance from
8940-50 levels upwards. While the Markets approaches this level, we will
distinctly see some volatile consolidation happening at this level. Some amount
of profit booking cannot be ruled out as the Markets approach this level.
However, the Markets continues to display good amount of strength and in event
of any consolidation or mild profit taking, it is likely to remain and trading
in a broad trading range.
All and all, with volatility not expected to go away; we
continue to reiterate the advice of keeping overall exposure at moderate levels.
While avoiding fresh excessive leverage, fresh purchases should be made ultra
selectively. Overall, while lying more emphasis on protecting profits at higher
levels, cautious optimism 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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.