MARKET REPORT May
14, 2015
Markets saw a extremely volatile session yesterday as the
NIFTY swung nearly 300-odd points intraday to finally end the day with gains.
The Markets witnessed positive opening and after such better than expected
opening, the Markets formed its intraday high of 8254.95 in the morning trade.
However, the Markets suddenly saw a sharp selling pressure and it saw
near-vertical paring of gains. It came off from its highs and dipped further
into the negative territory forming day’s low of 8089.80. It traded in a very narrow
range until afternoon but the second half of the session saw recovery coming
again. The Markets managed to recover nearly all of its gains and finally ended
the day at 8235.45, posting a net gain of 108.50 points or 1.34% while forming
a lower top and lower bottom on the Daily Bar Charts.
MARKET TREND FOR THURSDAY, MAY 14, 2015
Today’s analysis continues to remain on similar lines that
of yesterday. The Markets may post a flat and quiet opening but it again
becomes important to note that that the Markets still continues to trade below
its 200-DMA and yesterday’s rise has come once again on back of short covering
more than fresh buying. Given this fact, we may still continue to witness
volatile movements in the Markets.
For today, the levels of 8290 and 8350 will act as immediate
resistance whereas the levels of 8080 and 8005 will act as immediate supports.
The RSI—Relative Strength Index on the Daily Chart is 44.6688
and it remains neutral showing no bullish or bearish divergence or any failure
swing. The Daily MACD remains bearish trading below its signal line.
On the derivative front, the NIFTY May futures have once
again shed over 2.27 lakh shares or 1.62% in Open Interest. This indicates
short covering in the Markets.
Coming to pattern analysis, the Markets are stilling trading
below its 200-DMA and this level is likely to act as resistance on its way up.
Until the Markets moves past this level, it is likely to remain in a broad
volatile trading range with a downward bias. As of now, the Markets have formed
a very broad trading range of 8000-8325 band and it need to go beyond this to
successfully attempt a reversal.
All and all, we continue to reiterate our advice on
refraining from creating any aggressive positions. Bottom hunting and selective
buying may be done but in very small quantities as the Markets are not
completely out of the woods. Until the Markets moves past its 200-DMA and
sustains above that, we would continue to see some intermittent selling bouts
and volatility will remain ingrained in the Markets. Continuance of 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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