MARKET REPORT June
15, 2015
The Markets held on to the Thursday’s level on Friday as
well as it moved in a range bound manner remaining bit volatile and ended the
day with modest gains while the levels of 8000 continued to act as resistance. The
Markets saw negative opening and formed its intraday low of 7940.30 in the
early moments of the trade. It crawled into the positive territory after some
time and in the afternoon trade reached its highest point of the day at
7995.60. The Markets never maintained any directional bias and moved in either
direction remaining ranged bound. The Markets did not sustain this level as
well and by late afternoon trade pared all of those gains to dip into negative
again. The last hour of the trade saw some spurt from lower levels as the
Markets again managed to move into the positive territory. It finally settled
the day at 7982.90, posting a modest gain of 17.55 points or 0.22% while
forming a lower top and lower bottom on the Daily Bar Charts.
MARKET TREND FOR THURSDAY, JUNE 15, 2015
We continue with the direction of analysis that we had put
forth on Friday. Today, we can expect the Markets to open on a quiet note and
again look for directions. However, again, there are chances that the Markets
attempts to move past 8000-levels and moves back into the trading range.
However, until this happens, this level will continue to pose major resistance
as well. We had mentioned some potential signs of bottom formation in our
Friday’s edition. These are likely to be aided with the stable inflation data
and sharply better IIP data that we got on Friday post Market hours.
For today, the levels of 8000 and 8075 are likely to act as
important resistance. The supports come in at 7942 and 7880 levels.
The RSI—Relative Strength Index on the Daily Chart is
36.1212 and this remains neutral without showing any failure swings or any
bullish or bearish divergence. The Daily MACD remains bearish as it trades
below its signal line. On the Weekly Charts, the Weekly RSI is 40.3076 and it
has reached its lowest value in last 14-weeks which is bearish. However, it
does not show any bullish or bearish divergence. The Weekly MACD remains
bearish as it trades below its signal line.
On the derivative front, the NIFTY June futures have added
over 66,950 shares in Open Interest. This at least signifies that the spurt
that we saw on Friday was not on account of any short covering.
Coming to pattern analysis, the Markets continues to trade
within its filter of 8000-level support. There are chances that the Markets
will attempt to crawl back inside the broad trading range. However, the level
of 8000 will continue to act as major resistance and it would be crucial for
the Markets to move past that level. Until this happens, the Markets would
continue to remain in theoretical dangers of some more immediate short term
weakness.
Overall, though high degree of caution should continue to
prevail, we can expect at least some attempts by the Markets to move back into
the broad trading range. However, the resistance level of 8000 would be crucial
and it would be imperative for the Markets to move past 8000-levels. The
Markets would also set it eyes on the WPI inflation date coming up later today.
Overall, with the Markets critically poised, continuation of cautious outlook
is advised for today.
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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