MARKET REPORT February
18, 2015
The Markets halted its up move as it consolidated after
series of gains and ended the day on a absolutely flat note. The Markets saw a
positive opening and after positive opening, it strengthened further in the
morning trade marking the levels of 8870.10 as its intraday high. However post
this, The Markets failed to sustain and it saw some minor amount of profit
taking, purely on expected lines at higher levels. It saw itself retracing from
those levels as it pared most of its gains. It spent the most part of the
second half of the session trading in directionless manner in a sideways
trajectory. Though it made an feeble attempt to recover again, it pared the
recovery as well to trade in a negative territory for a very brief period while
it formed its intraday low of 8793.40. It finally settled the day at 8809.35,
posting a negligible gain of 3.85 points or 0.04% while continuing to form a
higher top and higher bottom on the Daily Bar charts.
MARKET TREND FOR
WEDNESDAY, FEBRUARY 18, 2015
The Markets will open today after a break as yesterday was a
trading holiday. Expect the Markets to open on a quiet to mildly positive note
and look for directions. The analysis would remain on similar lines that of
Monday as we can expect the Markets either to consolidate or face some minor
profit taking if it moves on the upside and approaches the upper rising trend
line.
The levels of 8870 and 8925 would act as resistance and the
supports come in much lower at 8730 and 8640 levels.
The RSI—Relative Strength Index on the Daily Chart is
61.2897 and it remains neutral as it shows no bullish or bearish divergences or
any failure swing. The Daily MACD remains bearish trading above its signal line
but it is showing signs of possible positive crossover in coming days.
On derivative front, NIFTY February futures have added over
2.42 lakh shares or 0.94% in Open Interest. This figures provides positive
signs that no offloading was seen in the last hours of the trade on Monday
while the Markets pared its gains.
Coming to pattern analysis, after moving past the levels of
8640, the Markets are consistently posting gains and forming higher tops and
higher bottoms on the Daily Charts.
However, as they approach the rising trend
line, anywhere above 8920 levels, they are likely to face resistance again.
This will cause the Markets to either consolidate or face minor profit taking
from higher levels. Though the broader trend continue to remain intact.
Overall, the Markets would open mildly positive and is also
likely to extend some gains in the initial trade. However, caution would grow
as the Markets approaches higher levels as some minor profit taking or some
consolidation at higher levels cannot be ruled out. Overall, it is advised to
lay more emphasis to protect profits at higher levels while limiting fresh
purchases with a highly selective approach.
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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