Daily Market Trend Guide -- Thursday, April 09, 2015

MARKET REPORT                                                                                              April 09, 2015

While continuing to trade on analysed lines, the Markets ended the day on a positive note after modestly positive opening but at the same time, the levels of 50-DMA continued to pose resistance to the Markets for the entire day as well. After seeing a modestly positive opening, the Markets traded in a narrow range with capped gains and at one point of time pared them as well but continued to stay in positive territory. The afternoon trade once again saw some strength returning as it formed the day’s high of 8730.50 in the afternoon trade. However, the Markets did not saw any runaway rally as it continued to trade in a capped range. It finally ended the day at 8714.40, posting a modest gain of 54.10 points or 0.62% while forming a higher top and higher bottom on the Daily Bar Charts.

MARKET TREND FOR THURSDAY, APRIL 09, 2015

Markets have continued to display good amount of strength and today as well, we can expect it to open on a fairly positive note. The Markets, as of now, still trade below its 50-DMA and today’s opening is likely to see the Markets open above its 50-DMA. It would be important for the Markets to maintain levels above this and capitalize on possible positive opening. The behaviour of the Markets vis-à-vis the levels of 50-DMA would be crucial to watch out for.

The levels of 8745 and 8780 would act as immediate resistance for the Markets. The supports would come in at 8680 and 8640 levels.

The RSI—Relative Strength Index on the Daily Chart is 55.5613 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 continues to remain bullish trading above its signal line.

On the derivative front, the  NIFTY APRIL Futures have added over 6.15 lakh shares or 3.32% in Open Interest. This is certainly a bullish piece of figure especially after shedding of Open Interest that was observed since last couple of sessions.

Coming to pattern analysis, today’s opening is likely to take the Markets above 50-DMA levels. It would be imperative for the Markets to maintain levels above 50-DMA. In event of any consolidation at higher levels, this level would act as support. However, given the rise of over 450-odd points from lows of March 27^th, even if the Markets consolidate from higher levels, it would be healthy in the immediate short term.

Overall, the directional bias of the Markets continues to remain bullish. It is likely to see positive opening and at the same time, it is also likely to consolidate from higher levels. This is likely to keep some amount of volatility ingrained in the Markets. Though some amount of caution is required, selective purchases may certainly be made. Cautiously 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

http://milan-vaishnav.blogspot.com

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