Friday, April 10, 2015

Daily Market Trend Guide -- Friday, April 10, 2015

MARKET REPORT                                                                              April 10, 2015
Markets continued to surge ahead and ended with gains for the fifth day in a row though it continued to resist to its 50-DMA for the most part of the session. The Markets saw a modestly positive opening on the expected lines but soon dipped into the red to form the day’s low of 8682.45 in the morning trade. However, it managed to crawl back into the green wherein it traded in positive territory until afternoon, though in a very capped and narrow range. The Markets pared those gain trade flat. However, in the late afternoon trade, the Markets saw itself surging on the upside again and this time, it went on to move past its 50-DMA levels which it had been resisting for the most part of the session. It went on to form the day’s high of 8785.50. In the process, these levels were sustained and the Markets finally settled the day at 8778.30, posting a net gain of 63.90 points or 0.73% while continuing to form higher top and higher bottom on the Daily Bar Charts.


MARKET TREND FOR FRIDAY, APRIL 10, 2015
We can expect a flat to quiet opening once again today and the Markets are generally likely to trade with a positive bias. Though it has moved past the levels of 50-DMA, some amount of consolidation at higher levels still cannot be ruled out with the levels of 50-DMA acting as support. Even in case of any consolidation, the overall bias of the Markets would continue to remain on the upside.

The levels of 8820 and 8865 would act as resistance. The levels of 8720 and 8675 would act as immediate supports for the Markets.

The RSI—Relative Strength Index on the Daily Chart is 59.0135 and it has reached its highest value in last 14-days which is bullish. It does not show any bullish or bearish divergence. The Daily MACD remains bullish trading above its signal line.

On the derivative front, the NIFTY APRIL Futures have shed 96,500 shares or 0.50% in Open Interest. This remains a negligible figure and one can conclude that no major short covering was seen from lower levels yesterday.

Coming to pattern analysis, the Markets have managed to move past the level of 50-DMA and in event of any consolidation, this level is likely to act as support. Barring possibilities some consolidation from higher levels, the overall bias of the Markets certainly remains on the upside. The Markets encounters some minor pattern resistances in between, is likely to consolidate and  likely to move up again. As mentioned often in our previous editions, consolidation would be required and in fact, healthy for the Markets.

Overall, the day remains crucial as the Markets approaches minor pattern resistances. With the quantum of the pullback that we have seen from March 27th lows, even if the Markets consolidates, it would display strength by doing so and would be healthy in the immediate short term. Some amount of volatility is likely to remain ingrained in the Markets. While continuing to make select purchases, cautious 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
+91-98250-16331


No comments:

Post a Comment

Note: Only a member of this blog may post a comment.