MARKET REPORT March
11, 2015
While the US Dollar continued to scale its peak, it affected
the Markets as it witnessed some more downside before it ended the day with
modest losses. The Markets saw a relatively flat start and after opening on a
flat note moved in a very narrow range in the early morning trade. The Markets
attempted a minor up move in the morning wherein it traded in positive
territory briefly while marking its intraday high of 8778. Soon, the Markets retraced
again to trade on an absolutely flat note in the afternoon trade. It was in the
second half of the session that the Markets saw weakness creeping in again. It dipped
in to the negative and went on form the day’s low of 8677.35 coming off nearly
100-odd points from the high point of the day. Though some sharp recovery was seen
in the final minutes of the trade, it finally ended the day at 8712.05, posting
a modest loss of 44.70 points or 0.51% while continuing to form a lower top and
lower bottom on the Daily Bar Charts.
MARKET TREND FOR WEDNESDAY, MARCH 11, 2015
Markets stand at a very critical juncture as of today.
Though the Global Markets remain subdued, we can once again expect some
stability in our Markets today. Expect the Markets to open on a flat to mildly
negative note and look for directions. The Markets currently trade above its
important support levels. In event of any temporary weakness, these levels may
be tested and even if they are not tested, the volatility will remain ingrained
in the Markets, at least for the immediate short term.
The levels of 8775 and 8830 will act as immediate resistance
for the Markets. The supports come in at 8640 and 8610 levels.
The RSI—Relative Strength Index on the Daily Chart is
46.3062 and it has reached its lowest value in last 14-days which is bearish.
Also, RSI has formed a fresh 14-period low while NIFTY has not yet and this is
Bearish Divergence. The Daily MACD continues to remain bearish trading below
its signal line.
On the derivative front, NIFTY March futures have shed over
2.06 lakh shares or 0.83% in Open Interest. This certainly signifies some
further unwinding of positions but at the same time, this relatively small.
Coming to pattern analysis, the Markets currently continues
to trade above all the 3 moving averages and above is important pattern support
levels as well. Further, NIFTY has pared nearly 400-odd points from its peak.
However, it continues to keep its overall up trend intact as it has not yet the
rising channel that it has been trading in. The important support comes in at
8640-8600 levels and it would be important to review the behaviour of the
Markets around these levels in event of any temporary weakness.
All and all, 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. More emphasis should be laid on protecting
profits at higher levels. With keeping focus on maintaining adequate liquidity,
cautious outlook is advised or 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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