Friday,
13 March 2015
MARKET REPORT March 12 2015
The Correction that was
witnessed in the markets for three trading sessions halted
yesterday, as markets rebounded from its expected support zone of its 50 Day Simple and Exponential moving averages.
Yesterday, markets opened
on a more than expected firm note. The
strength in the markets continued for the entire trading session, till close.
The market remained ranged bound near its intraday high through out trading
session. The market broke out of
the intraday trading range and staged sharp breakout in last hour of
trading session.
The 30-share S&P BSE
Sensex closed 0.95%, or 271.24 points, higher at 28,930.41, while the National
Stock Exchange’s 50-share Nifty was up 0.87%, or 76.05 points, to end at 8,776.
Substantial amount of
short covering was seen in the markets yesterday .
MARKET TREND FOR FRIDAY, 13 March 2015
Today, before technicals of the markets, a few
external, non technical events that are likely to impact the markets today
deserves a mention.
Today market sentiments will be positively boosted
by late evening passage of Insurance Laws ( Amendment ) Bill by Rajya Sabha.
Clues from overseas markets will also positively impact mood of the markets
today. IIP and CPI data were released post close of the yesterday’s trading
session. Industrial production growth slowed for a second straight month to
2.6% in January, compared with 3.2% in the previous month, while retail
inflation inched up to a four-month peak of 5.37% in February. This has
increased expectations of another round of rate cut by RBI, sooner than later.
In backdrop of these external factors impacting the
markets today, let us pay attention to
what prevails at the end of the day – technical analysis of markets.
It was mentioned here in previous edition that Pattern
Analysis clearly indicates that market is taking intraday support in range of 50 Day SMA
and EMA.- Moving Averages. Hence, till
these are breached, it can be
considered support zone intraday and at
close for the market.
As expected, the correction which continued for
three days, halted near these support levels. Pattern Analysis of Nifty
indicates that the market has given a Higher Top Higher Bottom on its Daily
High Low Chart. With this, at least for the time being, the 50 Day Simple and
Exponential Averages ( at Close levels ) , which are 8658 and 8677 as of today
have become good support for the market.
On Candle Chart, A white body occurred as Nifty
closed higher than they opened. This is a positive. RSI- Relative Strength
Index, which was a technical cause of
concern till yesterday, as mentioned in yesterday’s edition of Daily
Market Trend Guide, as it showed both Failure Swings and negative Divergence,
has repaired itself with yesterday’s rise in Nifty. Technical analysis of
Nifty’s RSI throws no causes of technical concerns, as The RSI is not currently
in a topping (above 70) or bottoming (below 30) range and is showing neither
Failure Swings or Divergence. Another important Momentum Indicator - Stochastic
Oscillator - is 13.3990. This is an
oversold reading.
These technicals of Nifty read along with the backdrop of above mentioned non technical factors today, it can be concluded that positive bias will be more or less intact today. Important resistance exists at 8792 ( 20 Day EMA) and 8871 ( Pattern ) and intraday, with supports at above mentioned range.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.