MARKET REPORT June
18, 2015
Markets continued
to surge and end yet another day with gains though it came off considerably
from the high point of the day. The Markets saw a positive opening and after
opening on modestly positive note traded with capped gains in the morning
trade. The Markets then transformed itself into rising trajectory and remained
in upward rising channel for the most part of the day. By late afternoon trade,
the Markets went on to form the day’s high of 8136.85. It was in the last
30-minutes of the trade that the Markets suddenly saw some paring of gains
which was seen as a caution ahead of the US Fed Reserve outcome, which had a
consensus of no change of rate. It finally settled the day at 8091.55, posting
a modest gain of 44.25 points or 0.55% while continuing to form a higher top
and higher bottom on the Daily Bar Charts.
MARKET
TREND FOR THURSDAY, JUNE 18, 2015
Today, expect the
Markets to open on a modestly positive note and look for directions. Overall,
with no objectionable wordings from the Fed Reserve, the Markets are expected
to consolidate and continue with its up move. However, it will continue to
remain in a broad trading range and some amount of volatility ingrained in it.
The levels of
8150 and 8225 will act as immediate resistance and the supports will come in at
8040 and 7990 levels.
The RSI—Relative Strength
Index on the Daily Chart is 43.7610 and it remains neutral without showing a
bullish or bearish divergence or any failure swings. The Daily MACD continues
to remain bearish as it still trades below its signal line. However, it has
flattened out and might report a positive crossover in coming days.
On the derivative
front, NIFTY June futures have added 94,875 shares or 0.61% in Open Interest.
This shows that there was no major shedding of open positions on Close basis.
Also some shorts too seem to have been added in the system.
Coming to pattern
analysis once again the Markets now continue
to trade in a broad trading range
of 8000-8350 levels. Though it has successfully managed to come back into the
broad trading range after a brief breach of its support, it has attempted to form a bottom but has not
yet confirmed it. It still continues to remain within a intermediate downtrend.
However, there is some room still left on the upside following with the Markets
might consolidate and attempt to confirm the bottom that it has formed.
Overall, the
Markets are likely to trade in a given range with somewhat weak directional
bias. However, the overall bias remains on the upside. Some stock specific
purchases can be made while protecting profits at higher levels as the Markets
will continue to remain vulnerable to profit taking bouts from higher levels.
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
Buying opportunity above 8000 index may show 8150-8250 level, consolidation is expected from lower level.
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