MARKET REPORT March
19, 2015
Markets ended with a modest loss yesterday as caution grew
ahead of FOMC meet outcome. The Markets saw a absolutely flat and quiet note
and traded in a capped range with minor losses. After range bound movement in
the morning, the Markets attempted to recover from its modest morning losses as
it traded flat and in positive territory for a very brief period. It traded
absolutely flat in the afternoon trade as caution overweighed the overall
sentiments. In the second half of the Markets saw some weakness coming in as it
gradually lost some more ground. It went on to form the day’s low of 8664. Some
minor recovery was seen but the Markets finally settled the day at 8685.90,
posting a modest loss of 37.40 points or 0.43% while continuing to form a
higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR
THURSDAY, MARCH 19, 2015
The Markets are to positively react to the FOMC
announcements coming in wherein the rate hike in immediate future, i.e. April
seems to be unlikely. Reacting to this, Markets are likely to see a decently
positive opening. With such decently positive opening, the support zone of
8620-8660 would continue to remain valid. However, it would be important to see
if the Markets maintains these gains and capitalizes on it later.
The levels of 8850 and 8920 would act as immediate
resistance for the Markets. The supports would come in at 8620 and 8570 levels.
The RSI—Relative Strength Index on the Daily Chart is
46.3906 and it continues to remain neutral as it shows no bullish or bearish
divergence or any failure swings. The Daily MACD remains bearish trading below
its signal line.
On the derivative front, the NIFTY March futures have shed
further over 7.43 lakh shares or 3.08% in Open Interest. This signifies some
more unwinding of positions. The NIFTY PCR stands at 0.89 as against 0.91 a day
earlier.
Coming to pattern analysis, the decently positive opening
will keep the support zone of 8620-8660 valid as of now. Also, this will keep
the Markets trading comfortably above all of its three moving averages.
However, this will also continue to keep the Markets in the overall broad range
of consolidation that it has been trading in. In order to continue with its up
move, it will have to move past the levels of 8925 with good amount of
participation and volumes in order to keep the original trend intact.
Currently, the intermediate trend of the Markets remains that of consolidation.
Overall, Markets are all likely to see the positive and
nearly gap up opening today. At the same time, it would be necessary for the
Markets to maintain those gains and capitalize on it as well. Though this would
still keep the Markets in the overall consolidation zone, selective purchases
may be made. While keeping a vigilant eye on profits, positive outlook is
advised for the day.
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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