MARKET
REPORT June
25, 2015
The Markets took
a pause yesterday after eight straight days of gains as it ended the day with
minor losses after coming off from its high point in the last thirty minutes of
the trade. The Markets saw a flat opening and after trading very briefly in the
negative in the early seconds of the trade crawled into the positive territory.
The Markets went ahead to post minor gains in the morning trade and thereafter
spent nearly entire session in the sideways trajectory while forming the day’s
high at 8421.35 in the late afternoon trade. However, it was last thirty
minutes of the trade that undid the Markets. The Markets came off sharply from
that level and traded flat after paring all of its gains. It further dipped
into the negative while forming the day’s low at 8338.90. It finally settled
the day at 8360.85, posting a minor loss of 20.70 points or 0.25% while forming
a higher top and nearly similar bottom on the Daily Bar Charts.
MARKET
TREND FOR Thursday, 25 June 2015
We keep today’s
analysis more or less on yesterday’s lines. Paring of gains yesterday was more
technical than the Greek reason as rollovers dominated the session. The Markets
are expected again to open on a flat and quiet note and look for directions.
Today is the expiry day of the current derivative series and we will continue
to see rollover dominated activities with some amount of volatility ingrained
in it.
The levels of
8425 and 8470 are immediate resistance for the Markets. The supports come in at
8330 and 8290 levels.
The RSI—Relative Strength
Index on the Daily Charts is 58.5340 and it remains neutral as it shows no
bullish or bearish divergence or any failure swings. The Daily MACD continues
to remain bullish as it trades above its signal line.
On the derivative
front, NIFTY added net of 23.50 lakh shares in Open Interest. NIFTY witnessed
45% rollovers and Market-wide rollovers were seen at 56%.
Coming to pattern
analysis, the Markets have pullback from its near term double bottom support of
7990-8010 levels and while doing so have also moved past the falling trend line
and 50-DMA resistance of 8300 levels. Having said this, since the Markets have
posted eight days of gains totalling to nearly 400-odd points, it would be no
surprise if it consolidates briefly at this levels. With the Close hovering
around its 200-DMA which is 8360, it would be perfectly natural and fine if the
Markets consolidates between 8290 and 8360 range.
All and all,
given the expiry day today, the Markets are likely to remain dominated with rollover
centric activities. The volumes remained low yesterday but today it might
remain bit higher coupled with some amount of volatility ingrained in it. With
the chances of the Markets consolidating briefly at these levels, fresh
positions should be taken very selectively and should be kept limited. The
Markets will consolidate but resume its sustainable up move only after it moves
past 8425 levels. Overall, continuation of vigilant approach 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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