Wednesday, February 18, 2015

Daily Market Trend Guide -- Wednesday, February 18, 2015

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
+91-98250-16331


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