Monday, February 16, 2015

Daily Market Trend Guide -- Monday, February 16, 2015



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


+91-98250-16331




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