Daily Market Trend Guide -- Tuesday, June 16, 2015

MARKET REPORT                                                                          June 16, 2015

The Markets traded precisely as analysed as it attempted to crawl back above critical 8000-levels while it ended the day with modest gains. The Markets saw negative opening but formed its intraday low of 7944.85 in the early seconds of the opening trade. Markets soon rose to trade in the positive territory after such modestly negative opening. Though it trade in the positive territory, the gains remained very much capped and the Markets continued to struggle with the 8000-mark. This continued for major part of the session as the Markets kept going above and below of the 8000-mark. It was in the late afternoon trade that the Markets once again managed to move past that market again and this time went on to form the day’s high of 8057.70. It did came off a bit from these levels and the Markets finally ended the day at 8013.90, posting a net gain of 31 points or 0.39% while forming a higher top and higher bottom on the Daily Bar Charts.

MARKET TREND FOR TUESDAY, JUNE 16, 2015

The Markets have attempted to move back in to the broad trading range by crawling above its 8000-mark but it still continues to remain in the woods. Today, we can again expect the Markets to open on a quiet note and look for directions. Since the Markets once again have a all important task of keeping its head above 8000-mark, it keeps our analysis once again on the similar grounds.

The levels of 8050 and 8135 will act as immediate resistance levels for the Markets. The supports exist at 7950 and 7880 levels.

The RSI—Relative Strength Index on the Daily Chart is 38.3171 and it remains neutral as it shows no bullish or bearish divergence or any failure swings. The Daily MACD remain bearish as it trades below its signal line.

On the derivative front, the NIFTY June futures have shed over 7.61 lakh shares or 4.57% in Open Interest. This is little worrisome figure as it suggest unwinding happening from upper levels. This will have to get replaced with fresh buying if the Markets were to keep its head above the all important 8000-mark.

Going by pattern analysis, the Markets did slip below the immediate double bottom support of 8000 but managed to crawl back inside it. This keeps the Markets into a broad trading range with the levels of 8350 acing as upper resistance. Having said this, as mentioned before as well, it would be critically important for the Markets to remain and trade above 8000-levels. In event of the Markets giving up this level, we can see some more weakness coming in for the immediate short term.

All and all, though the Markets have managed to trade above 8000-mark once again, the pullbacks have not been with required conviction and volumes. Though on the other hand, no major delivery based session has been seen as well. However, the Markets continue to remain in the woods for the time being and this call for keeping the overall exposure limited. Only select buying should be done while maintaining overall liquidity in the Markets.

Milan Vaishnav,

Consulting Technical Analyst,
Af. Member: Market Technicians Association (MTA), USA
Af. Member: Association of Technical Market Analysts, INDIA

www.MyMoneyPlant.co.in

http://milan-vaishnav.blogspot.com

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