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
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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