Thursday, February 12, 2015

Daily Market Trend Guide -- Thursday, February 12, 2015

MARKET REPORT                                                                               February 12, 2015
The Markets had a stable session yesterday as it continued with its up move and ended the day with modest gains while the levels of 8640 also continued to act as support. The Markets saw a positive opening and remained positive throughout the session. Also, the entire session of was spent in a 25-odd range as post opening the Markets remained throughout in sideways trajectory. In the mid session, some strength came as the Markets attempted to move past the levels of 8640 as it formed its intraday high of 8651.95. However, it came off a bit in the end while continuing to trade in a ranged manner. The Markets ended the day at 8627.40, posting a modest gain of 61.85 points or 0.72% while forming a higher top and higher bottom on the Daily Bar Charts.


MARKET TREND FOR THURSDAY, FEBRUARY 12, 2015
Today’s analysis continues to remain more or less on similar lines as the behaviour of the Markets vis-à-vis the levels of 8640 will remain crucial. Expect the Markets to open on a quiet to mildly negative note and look for directions. The Markets are likely to initially resist to the levels of 8640 with an upward bias.

The levels of 8640 and 8695 will act as immediate resistance levels. The supports come in much lower at 8470 and 8445 levels.

The RSI—Relative Strength Index on the Daily Chart is 51.7604 and it remains neutral without showing any bullish or bearish divergence or any failure swing. The Daily MACD remains bearish trading below its signal line.
On the derivative front, the NIFTY February futures have shed over 1.33 lakh shares or nominal 0.54% in Open Interest. This signifies no major change in overall positions in the Markets. A minor change in OI also indicates consolidating and directionless markets as well.

Taking a cue from pattern analysis the Markets are resisting very much on expected lines to the levels of 8640. It corrected very sharply after testing that level a day before and yesterday, it resisted moving past that level. This is the level that the Markets broke on the downside and therefore it now acts as a resistance. It would be very important for the Markets to move past this level to resume its overall major up trend. Until the Markets move past this level, it will continue to consolidate in a broad range.

Overall, though the bias of the Markets certainly remains on the upside, it is advised to maintain moderate exposures until it moves past 8640. Stock specific action will be witnessed and highly selective purchases may be made as sectoral out performance will continue. Overall, positive 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
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