MARKET REPORT February
16, 2015
The Markets extended the gains for the fourth day in a row
as it went on to trade steady in the entire session and ended the day with
decent gains. The Markets saw modestly positive opening on expected lines and
traded steady in the morning session. It saw some more strength coming in the
early afternoon trade. Thereafter, in the second half of the session, it
continued to add steady gains while it traded in rising trajectory. It went on
to form the day’s high at 8822.10, and maintained these levels till the end. It
finally settled the day at 8805.50, posting a decent gain of 93.95 points or
1.08% while continuing to form a higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR MONDAY, FEBRUARY 16, 2015
Expect the Markets to open on a modestly positive and quiet
note and trade with gains at least in the initial trade. The Markets are
expected to continue extending its gains but at the same time, as it approaches
its one of the rising trend lines as evident from the Charts, it would be time
to ring in caution again as some amount of consolidation and minor profit
taking from those levels cannot be ruled out.
The levels of 8840 and 8915 will act as immediate resistance
for the Markets. The supports come in much lower at 8730 and 8640 levels.
The RSI—Relative Strength Index on the Daily Chart is
61.1090 and it is neutral as it shows no bullish or bearish divergences or
failure swings. The Daily MACD continues to remain bearish trading below its
signal line. On the Weekly Charts, the Weekly RSI is 66.6889 and this too is
neutral as it shows no bullish or bearish divergence or failure swings. The
Weekly MACD is bullish trading above its signal line.
On the derivative front, NIFTY February futures have added
over 5.01 lakh shares or 1.98% in Open Interest. This is a positive indicator
and suggests that fresh buying has been seen in the Markets in the previous
session.
Coming to pattern analysis, the Markets are overall expected
to continue to extend gains until they approach the upper rising trend line on
the Daily Charts. Even on the Weekly Charts, the upward rising channel is bit
steep and this can cause some weariness in the Markets. The Markets still has
gap for some 1-1.5% upside on the Daily Chart and on the Weekly Charts, it
faces pattern resistance around same levels. It would be extremely critical to
watch the behaviour of the Markets above 8900 levels as those levels carry
multiple resistances as well and can continue to act as potential top as it has
been doing now.
Overall, for the immediate short term, the Markets are
likely to continue to extend gains but at the same time, with each higher level
now, the possibility of consolidation and minor profit taking cannot be ruled
out. Overall, it is advised to keep making selective purchases but at the same
time, more emphasis would be required to keep protecting and booking profits
with every rise as well.
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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