MARKET REPORT April
21, 2015
The Markets continued to display heavy bearish undertone and
continued to decline for the fourth day in a row and ended the day with a deep
cut. The Markets, as it had been doing on previous three occasions, opened on a
modestly negative note. Post such modestly negative opening, the Markets spent
the first half of the session once again in a capped range and with relatively
limited losses. Just when it seemed that the Markets may make a feeble attempt
to recover, it saw some fierce selling pressure coming in once again and saw
the Markets continuing to form fresh lows. It went on to form the day’s low of
8422.75 towards the end of the session. With no major recovery coming in, the
Markets ended the day at 8448.10, posting a net loss of 157.90 points or 1.83%
while continuing to form a lower top and lower bottom on the Daily Bar Charts.
MARKET TREND FOR TUESDAY, APRIL 21, 2015
Markets have continued to remain in bearish grip for
yesterday as well and ended the fourth day with losses. Today as well, there
aren’t any positive triggers but at the same time, we can once again expect a
quiet start to the Markets. The Markets have closed below its 50-DMA and
100-DMA and b of these levels would now act as resistance on its way up.
For today, the levels of 8490 and 8565 would act as
immediate resistance whereas the supports come in much lower at 8390 and 8325
levels.
The RSI—Relative Strength Index on the Daily Chart is
38.1216 and it continues to remain neutral while showing no bullish or bearish
divergence or failure swings. The Daily MACD remains bearish trading below its
signal line.
On the derivative front, the NIFTY April futures have shed
49,750 shares or nominal 0.24% in Open Interest. These figures, individually
remains insignificant. However, we have seen that the Markets have piled up
huge amount of short positions while on its decline and this means that there
are lot of shorts that exist in the system. This also means that there has been
selling in Cash segment which is, in turn, hedged with heavy shorts in the
futures.
Coming to pattern analysis, the Markets have breached its 50
and 100-DMA while on its way down. However, the decline is more due to an
external feature, i.e. the issue of retrospective tax demand on portfolio
investors, and less on technical ground. This reason is evident because, the
Markets have declined in the manner as if these key supports never existed.
Such news flows tend to disregard the technical factors as well as the
technical levels.
Overall, Markets have now shed 385-odd points from the
pullback of 493-odd points from the Close of March 27th. This
translates into correction of 78% of the pullback. Usually, such levels see
some support coming in and owing to huge short positions that have been seen
piling up in the futures segment, even a small technical pullback cannot be
ruled out. However, it is advised to completely refrain from creating aggressive
positions and maintain cautious outlook in the Markets.
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
You are showing daily market trend its very helpful to all traders.
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