Daily Market Trend Guide March 25, 2015
MARKET REPORT
The Market yesterday opened more or less flat and turned positive immediately in the
initial hours of trade and remained in the positive trajectory till mid of the
trading session. Thereafter, the markets started encountering mild selling pressure around
noon. This dragged the market , slowly but steadily near to the previous close and also briefly into red. Immediately thereafter,
market witnessed sharp up move, which was met with equally sharp downward pressure . In the afternoon trades,
market saw very choppy session. Markets
witnessed sharp and sudden offloading in the last hour of trade. Towards the end of the session, Two days
ahead, volatility was seen due to March expiry .
In spite of the sharp volatility, markets traded precisely
in the range foretold- 8644 as
resistance at upper levels, with supports in the range of 8508 – 8520. The market gave intraday high of 8627 and intraday low of 8535.
MARKET TREND FOR WEDNESDAY, MARCH 25 2015
Since the
start of expected correction, the
markets have behaved and remained in the foretold and expected range. It was
mentioned in yesterday’s Daily Market Trend Guide that It remains to be seen,
whether important supports are breached or markets takes support at these
levels and correction takes a breather.
Likewise, market did test the important support
range, but no downward breakdown was
seen, even in a very volatile session
towards the end.
However, Technical Analysis of Daily High Low Chart
reveals that even though markets have
not downward breached these important
support levels of Pattern and Moving
Averages as yet, it has closed very near to these levels.
The Technicals
For today, Candlesticks Chart of Nifty is very
eventful; technically. Colour of the
candle is insignificant for today as there is very minor difference
between open and close levels of Nifty . Two bearish formations - A long upper shadow and An on-neck line have occurred on Candlesticks charts. The MACD
is bearish since it is trading below its signal line. The RSI has just reached
its lowest value in the last 14 period(s).
This is bearish.
Pattern Analysis of Daily High Low Chart of Nifty
shows that the markets are ranged and neither able to
upward penetrate the resistance levels, now important supports are downward broken. Also the important support of 100 Day Moving Average
is also still intact.
F&O Data Analysis
This week being March series expiry week, analysis
of F&O data is also important, which reveals that there is a build up of
maximum open interest in Nifty options
side is at strike 8500 puts indicating support. Also, build up is seen on near
money strikes. Roll over , so far is low and
roll over cost is high. This will make March expiry volatile. Roll overs
seem to be devoid of momentum, as Nifty roll
overs is just around 32 %
Conclusion
In light of this technical analysis of Nifty for
today read along with F&O data, it can be concluded that today market are
slated to open on a flat note with positive bias. Today’s open and initial
hours of trade becomes very important. For today also the support range of 8508
– 8520 is expected to act as major supports for the markets. The markets need
to open and sustain above this range to avoid weakness. Any up move will face resistance at around
8644 today also. Today’s session is expected to be volatile also as indicated
by F&O data, as we near the March expiry.
However, no major downward breach is expected, at
least of today, as - an inverted hammer had occurred on Candlesticks charts. If this occurs during a downtrend which
appears to be the case with NIFTY it implies a reversal. Also the important
supports of Patterns and 100 Day Moving Average of Nifty are still intact and
have not been broked.
It is advised to be cautious and alert at every highs today, with positive
bias.
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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