Daily Market Trend Guide Monday,
16 March 2015
MARKET REPORT March 13 2015
As expected by the most, the Market in previous trading session on Friday 13th
March opened on a positive and firm note.
The Market gained 73 points and
went on to register intraday high of 8849.75 in the first hour of trading.
This intraday high,
which was achieved early in the day, was the level, which fell within the expected and
foretold strong resistance range. And immediately registering this intraday
high, the market started encountering
strong resistance and heavy selling.
The bout of profit booking and selling was much sharper than expected and the market
never recovered from this for the rest
of the trading session and finally closed
at 8647 with damage of 128 points on Nifty.
MARKET TREND FOR FRIDAY, 16 March 2015
In the Friday March
13 edition of Daily Market Trend Guide, it was mentioned that Important resistance exists at 8792 ( 20 Day EMA) and 8871 (
Pattern ) and intraday, with supports at
the 50 Day Simple and Exponential Averages ( at
Close levels ) , which are 8658 and 8677 range. .
Likewise, the market in spite of all positive clues, failed
to move beyond 8849.75 intraday and encountered heavy selling pressure, but
the all important expected support of
8644 ( Pattern ) was not breached . The intraday low was 8631, which was not
much below the expected range of 8658 – 8677.
The resistance was expected as stated, but the selling bout
was much sharper then expected . What was expected in a few trading day, was
witnessed in a day, and the market which
saw heavy volatility of 218 points Nifty, gave a tall intraday bar on Daily
High Low charts of Nifty touch both resistances and supports in a day.
Pattern Analysis indicate that for today and rest of the
week, the range of 8644 ( Pattern ) and
8665 ( 50 Day Simple Moving Average) as
of today, has become very decisive range.
On Candle charts, the engulfing bearish pattern occurs
during a downtrend it may be a last engulfing bottom which indicates a bullish
reversal. The test to see if this is the
case is if the next candle closes above the bottom the current (black) candle's
real body. The MACD is bearish since it is trading below its signal line.The
MACD crossed below its signal line 4 trading days ago. The RSI has just reached
its lowest value in the last 14 periods.
This is bearish and its is a Failure Swing.
This technical analysis
indicates that the markets are
still not out of woods. Expect
bouts of selling at every rise.
Today markets are
expected to open on a flat to weak note.
Today, If the market
opens above this range and manages to hang on above this range, this range will act as important support
levels for the day. On down side, if the Markets breach these levels, it should find support at 8560 – 8535 range as indicated by Pattern
Analysis.
Until the markets move above these decisive and all
important range, weakness is expected
and this is applicable today and for the
rest of the week.
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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