MARKET REPORT February
24, 2015
What seemed to be a stable session yesterday took a bearish
turn as the Markets reacted to the news of S&P report and issues of file leakages
and ended the day with a deep cut. The Markets saw a modestly positive opening
and formed the intraday high of 8869 in the early morning trade. Post forming
of this level, the Markets traded more or less stable and moved with capped
gains in a sideways trajectory on thin volumes. This continued until late
afternoon trade as the Markets continued to trade with no directional bias but
remained more or less stable. However, it took a bearish turn in the last hour
and half of trade. It came off rapidly and dipped into the negative territory.
It further went on to form the day’s low of 8736.10 in the final minutes of the
trade. No major recovery was seen and it finally ended the day at 8754.95,
posting a net loss of 78.65 points or 0.89% while forming a lower top and lower
bottom on the Daily Bar Charts.
MARKET TREND FOR TUESDAY, FEBRUARY 24, 2015
Today, expect a quiet opening in the Markets. The Markets
may open modestly positive or flat and trade in a range. What we saw yesterday
was more of a panic / knee-jerk reaction
by the Markets but today, we can see some amount of stability returning in the
Markets. There has been no structural breach on the Daily Charts. We have an
eventful long week this time with the Markets trading also on Saturday due to
Budget. Overall, though no major sell off or breach on Charts may be seen but
the Markets would continue to consolidate until Budget.
The levels of 8790 and 8845 would act as immediate
resistance levels. The supports would come in at 8985 and 8640 levels.
The RSI—Relative Strength Index on the Daily Chart is
54.4726 and it remains neutral as it shows no bullish or bearish divergences or
failure swings. The Daily MACD is bearish after reporting a negative crossover
and it now trades below its signal line.
On the derivative front, the NIFTY February futures have
shed over 64.12 lakh shares or 27.96% in Open Interest whereas March futures
added 60.58 lakh shares or 144.51% in Open Interest as rollover took place.
While taking a look at pattern analysis, as mentioned
before, there is no structural breach on the Charts after yesterday’s decline
in the Markets. It has kept its overall trend intact and continues to trade
above its key support levels. However, given the technical indicators and the
major events coming up this week, we will continue to see the Markets trading
in a broad range.
All and all, though no major flipside expected one needs to
be cautious as approach the Budget. By the time we approach this event, we can
certainly expect volatility to remain ingrained in the Markets. Purchases should
be kept very limited and selective while maintaining cautious outlook 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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