MARKET REPORT June
01, 2015
The Markets had a very robust
session on Friday as it ended the day
with decent gains amid one of the highest volumes recorded in recent past. The
Markets saw a positive opening and it traded with modest gains in the morning
trade. After trading with capped gains, the Markets saw some more strength
coming in afternoon session as it added more to its morning gains. The Markets
once again traded in sideways trajectory for the most part of the afternoon
session and also pared some of its gains later. However, it once again perked
up in the last hour and half of the trade. The Markets moved past its previous
range and went on to form the day’s high of 8443.90. These levels were
maintained and the Markets finally settled the day at 8433.65, posting a decent
gain of 114.65 points or 1.38% while forming a higher top and higher bottom on
the Daily Bar Charts.
MARKET TREND FOR MONDAY, JUNE
01, 2015
Today would remain a crucial
session for the Markets. Expect the Markets to open on a flat note and trade in
a range in the initial trade. On one
hand, the Markets have resisted to its 50-DMA at Close and there is 100-DMA
ahead of that, and on the other hand, non-technical factors are likely to fuel
the bullish bias of the Markets. The GDP Data of 7.5% and 7.3% sequentially and
YOY has remain in line with the estimates and other factors such as expectation
of rate cut and development in China where debt facilities were drastically
reduced are likely to aid the upward bias of the Markets.
For today, the levels of 8438 and
8550 are immediate resistance for the Markets. The supports come in at 8370 and
8330 levels.
The RSI—Relative Strength Index on
the Daily Chart is 54.0504 and it remains neutral as it shows no bullish or
bearish divergence or failure swings. The Daily MACD remains bullish while it
trades above its signal line. On the Weekly Charts, the Weekly RSI is 50.9581
and this too is neutral as it shows no bullish or bearish divergence or any
failure swing. The Weekly MACD, however, continues to remain bearish trading
below its signal line.
On the derivative front, the NIFTY
June futures have added over 28.77 lakh shares or massive 22.18% in Open
Interest. This is a very clear and very significant indication that there has
been huge buying in index futures which is certainly a positive indicator. The
NIFTY PCR stands at 0.95.
While taking a look at pattern
analysis, the Markets have once again attempted to confirm the reversal after
the bottom that it formed on May7th. It has attempted to form a higher bottom
after Friday’s up move and it would be critically important to see that the
Markets move past its 50 and 100-DMA as well in order to convincingly confirm
the bottom formation. However, in event of any untoward movement, the level of
200-DMA will continue to act as support. On the Weekly Chart, the Markets
continue to trade above all of its moving averages.
All and all, the Markets have seen a
good amount of buying from lower levels. It is advised to continue to make
select purchases and the overall bias remains on the upside. However, vigilant protection
of profits too is advised as the Markets are yet to move past the 50 and
100-DMA at Close and it is yet to react to RBI Credit Policy tomorrow. Due to
all this volatility is likely to continue to remain ingrained in the Markets.
Overall, cautious optimism 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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