MARKET REPORT April
24, 2015
The Markets had a
volatile session yesterday as it consolidated in a given range and finally
ended the day with modest losses after a positive opening. The markets saw a
better start as it opened positive but it formed its intraday high of 8504.95
in the very early minutes of the trade. After posting this high, the Markets
traded sideways but soon lost all of the morning gains in the late morning
trade to go in negative territory. The afternoon trade saw the Markets slipping
further as it went on to form the day’s low of 8361.85 in the afternoon trade
losing over 145-odd points from the high point of the day. However, the late
afternoon trade saw the Markets recovering again as it recovered all of its
losses to trade briefly into positive but lost some ground again towards the
end. After a volatile trade, the Markets finally ended the day at 8398.30,
posting a modest loss of 31.40 points or 0.37% while forming a lower top and
lower bottom on the Daily Bar Charts.
MARKET
TREND FOR FRIDAY, APRIL 24, 2015
Markets had a volatile session yesterday and
that same amount of volatility is likely to persist today. The Markets are
likely to see a quiet to modestly positive opening but is also likely to remain
in consolidation mode with some amount of volatility ingrained in it. The
Markets are in the process of finding its bottom and are near their pattern
support but in event of any weakness creeping, it is likely that it tests its
200-DMA.
For today, the
levels of 8505 and 8560 will act as immediate resistance for the Markets today.
The supports come in at 8360 and 8250 levels.
The RSI—Relative Strength
Index on the Daily Chart is 37.5260 and it remains neutral showing no bullish
or bearish divergence or any failure swings. The Daily MACD remains bearish
trading below its signal line. On the Candles, If the engulfing bearish
pattern occurs during a downtrend (which appears to be the case with NIFTY), 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.
On the derivative front, the NIFTY APRIL Futures have shed over 9.35 lakh
shares or 4.39% in Open Interest. This clearly indicates unwinding of positions
from higher levels. It would be very important to see if this gets replaced
with fresh buying from higher levels.
Coming to pattern analysis, the Markets have tested the bottoms that it
formed on March 27th and have once again attempted to take support
from there. The Markets are in the process of finding bottoms and it is likely
that it may attempt a pullback once again, but it is also equally important to
note that any more weakness in the Markets will increase its probability of
testing the supports of 200-DMA.
All and all, the Markets may attempt a pullback but at the same time, the
pattern support of the lows formed on March 27th would be important.
It would be imperative for the Markets to trade above this levels as any breach
will bring it nearer to its 200-DMA. It is advised to refrain from taking any aggressive
positions on either side and more emphasis should be laid to preserve and
maintain liquidity. 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
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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