MARKET REPORT June
05, 2015
Markets had a session with heightened volatility as it moved
60-odd points on either side but finally ended the day on a absolutely flat
note. The Markets saw a flat opening and after trading positive for a brief
time, slipped in to the negative. However, it again saw itself moving in the
positive territory in the morning trade and formed its intraday high of
8160.05. Markets traded sideways without any directional bias but soon saw
itself under selling pressure again amid some global concerns of surging bond
prices and weak opening in European markets and formed the intraday low of
8056.75. However, the second half of the session saw the Markets recovering in
a remarkable manner especially in last hour and half of trade. The Markets
managed to recover almost its entire losses and it finally settled the day flat
at 8130.65, posting a very nominal loss of 4.45 points or 0.05% while
continuing to form a lower top and lower bottom on the Daily Bar Charts.
MARKET TREND FOR FRIDAY, JUNE 05, 2015
Today, though we continue to keep our analysis more or less
on similar lines, we can expect some pain in the initial trade today. Expect
the Markets to open on a negative note today and attempt to find its bottom
just like it did yesterday. There are faint chances that we see some
improvement post negative opening as we go ahead in the session. The Markets
have continued to pile up short position as evident from the F&O data.
The levels of 8175 and 8230 are likely to act as immediate
resistance for today. Supports would come in at 8050 and 8000 levels.
The RSI—Relative Strength Index on the Daily Chart is
38.6326 and it has reached its lowest value in last 14-days which is bearish.
Though it does not show any bullish or bearish divergence. Daily MACD remains
bearish as it trades below its signal line.
On the derivative front, the NIFTY June futures have added
over 2.31 lakh shares or 1.44% in Open Interest. This makes it evident that
more shorts have been added in the system yesterday and there was also some
buying that was seen yesterday in last 90 minutes of the trade.
Taking a cue from pattern analysis, the Markets are expected
to hold its bottoms formed on May 7th. It is very much likely that
the Markets do not go below 8050 levels and in case of it going below this levels,
it will take support on the bottoms formed on May 7th. Possibilities
of this happening seem very less as the Markets have already started piling
shorts and has shown clear discomfort at levels near 8050. On the upside, the
levels of 200-DMA will continue to pose resistance. The Markets have not formed
any confirmed bottom and have not shown any clear signs of reversal as of now.
All and all, keeping all of the above in view, we continue to
reiterate our advice to remain very light on the overall exposure. Though some
bargain hunting can be done, it should be very limited and stock specific.
Overall, continuance of highly 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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