MARKET REPORT May
22,2015
The Markets consolidated in yesterday session as it swung on
either side but ended on absolutely flat note after recovering from its lows.
The Markets saw near –flat opening but soon formed its intraday high of 8446.35
in the very early minutes of the trade. However, the Markets soon came off from
its highs and saw some rapid paring of gains and formed the day’s low of
8382.50 in the late morning trade, coming off nearly 65-odd points from the
high point of the day. The Markets attempted to find its bottom again as it saw
some recovery coming in and it managed to recover all of its gains and also
went into positive territory by afternoon session. No major movement was seen
and the Markets spent rest of the session heading nowhere. It finally ended the
day at 8421, posting a very minor loss of 2.25 points or 0.03% while forming a
near parallel bar on the Daily Bar Charts.
MARKET TREND FOR
FRIDAY, MAY 22, 2015
Today’s analysis continues to remain more or less on similar
lines. Expect the Markets to open on a flat to mildly negative note and look
for directions. Though quiet opening is expected, the Markets will continue to
trade in a capped range and some volatility like yesterday cannot be ruled out.
The Markets are consolidating going near to its 50-DMA and
though such
consolidations are healthy, it would be crucial for the Markets to continue
with their up move especially given the expiry in the next week.
For today, the levels of 8475 and 8540 will act as immediate
resistance levels for the Markets. The supports come in at 8315 levels.
The RSI—Relative Strength Index on the Daily Chart is
53.1863 and it remains neutral showing no bullish or bearish divergence or any
failure swing. The Daily MACD continues to remain bullish trading above its
signal line.
On the derivative front, NIFTY May futures have shed over
4.39 lakh shares or 3.23% in Open Interest. Though we can attribute this to
short covering, merely attributing this singularly to short covering will not
be proper as some amount of rollovers too have begun.
Coming to pattern analysis, the reading remains similar to
that of yesterday. After moving past the levels of 200-DMA, the Markets are showing sideways
consolidation and in the process, the two immediate resistance for it are its
50 and 100-DMA respectively. Though such consolidation is healthy, it would now
be crucial for the Markets to move past these levels. Until this happens ranged
consolidation is expected to continue with the levels of 200-DMA expected to
act as support.
All and all, keeping the overall analysis on the similar
lines that of yesterday, the Markets may see ranged movement post negative
opening and intermittent bouts of weakness cannot be ruled out. Some purchase may
be made as sector specific out
performance would be seen but overall, maintenance of caution at higher levels
is advised.
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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