Daily Market Trend Guide Thursday,
March 12, 2015
MARKET REPORT March 11 2015
As expected, correction continued in the market .The Markets
yesterday started the session on a shaky note. It opened in mild positive zone, but as foretold, started losing ground in first hour of trade.
The session was volatile. The market encountered selling
pressure at every rise, especially post
noon session wherein it attempted a
sharp pull back but met with selling at intraday high levels of the day
resulting into equally sharp intraday correction. The market finally managed to
close almost flat at 8699, with loss of
12 points.
The correction, which was foretold from here , continued for
the third consecutive trading session.
MARKET TREND FOR THURSDAY, MARCH 12, 2015
Technically speaking, previous trading session has thrown an
important Pattern Analysis reading. In spite of
high volatility, and selling pressure at higher levels, the Market took
support intraday at 8682 . This intraday support is almost the same that of an
earlier previous session. Also, it is very near to its important support levels
of 8644 as depicted by the Daily
High Low charts of Nifty.
Also important is the
50 Day Exponential Moving Average
of Nifty, which is 8671 as of today. 50
Day Simple Moving Average, as of today is 8647.90. Pattern Analysis clearly indicates that
market in taking intraday support in range of these Moving Averages. Hence,
till these are breached, it can be considered support zone intraday and at close for the market.
If these support zone is breached by the market, very strong
support exists first at 8644 and then at
8504 levels. This zone will act as good
support for the market in case of continuing
correction.
Currently the MACD is bearish since it
is trading below its signal line. However, The MACD is not in an Overbought
zone. RSI – Relative Strength Index, has just reached its lowest value in the
last 14 periods, and suffers from Failure Swings. This is bearish. Also, The
RSI has set a new 14-period low while the security price has not. This is a bearish divergence.
With this technical reading
of Important Indicators, it should be concluded that correction may continue,
at least intraday, for a day or two.
Till the above reading of RSI continues,
the Market will face tough resistance
and selling pressure at higher levels.
During this mode of correction, the market is expected to
take support at the levels mentioned above as depicted by Pattern Analysis.
The Markets are expected to open on a flat to slightly
positive note today. However, today also, we repeat that, we can expect some
stability to come in but in any case volatility would continue to remain embedded
in the Markets in the immediate short term. We continue to reiterate our advice
on curtailing exposures at moderate levels.
Keep booking profits, if any, at every rise and be very
cautious at every intraday high of the
market today.
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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