Tuesday, June 23, 2015

Daily Market Trend Guide -- Tuesday, June 23, 2015



MARKET REPORT                                                                                 June 23, 2015

Backed by sharp short covering along with some fresh buying as well, the Markets staged a sharp up move yesterday as it ended the day with decent gains. The Markets saw a positive opening and saw its elf in upward rising trajectory throughout the session. While forming an upward rising channel post opening, the Markets kept posting fresh gradual highs during the day. It also managed to move past the 50-DMA level and downward sloping trend line and tested its 200-DMA levels as well which is 8361.74. The Markets went on to form the day’s high of 8369.45 in the last 30-minutes of the trade. It came off a bit from those levels but decently hanged on to its gains. It finally ended the day at 8353.10, posting a decent gain of 128.15 points or 1.56% while forming a sharply higher top and higher bottom on the Daily Bar Charts.


MARKET TREND FOR TUESDAY, JUNE 23, 2015

Today, once again, the Markets are likely to open on a modestly positive to quiet note and look for directions. There are all chances that the Markets continues with its up move at least in the initial trade but it now trades between its 50-DMA and 200-DMA and some consolidation in between these two levels cannot be ruled out. In event of any minor downside, the levels of 8290-8310, which was resistance earlier on, will act as support.

For today, the levels of 8365 and 8430 will act as immediate resistance for the Markets. The supports will come in at 8310 and 8265 levels.

The RSI—Relative Strength Index on the Daily Chart is 58.6791 and it has reached its highest value in last 14-days which is bullish. It does not show any bullish or bearish divergence though. The Daily MACD is bullish as it trades above its signal line. The candles show some more potential upsides for the Markets.

On the derivative front, rollovers continued and roughly stood at 25% as of yesterday. NIFTY June futures shed over 20.81 lakh shares or 13.86% in Open Interest whereas July Futures added over 13.47 lakh shares or 46.40% in Open Interest. NIFTY PCR stands at 1.14 as against 1.04 on the previous day.

Coming to pattern analysis, the Markets have attempted to move past the falling trend line resistance and 50-DMA which coincided at 8290-8310 levels. Having done this, it is likely to resist at close to its 200-DMA which stands at 8362. In any case, if it happens to move past these levels as well, this will become its support later on. In event of any minor downsides or some amount of consolidation, the levels of 8290-8310 will continue to act as support and will help markets confirm its attempted reversal.

Overall, the upside bias will remain but at higher levels some natural amount of profit taking or some amount of consolidation cannot be ruled out. However, apart from technicals, we will also be dictated by rollover centric activities and given the shorts that exists in the system; we might also continue to see some more upside as well. Some amount of volatility may return and profits if any, should be protected at higher levels. However, even if some consolidation happens, overall bias remains on the upside in the immediate short term.

Milan Vaishnav,

Consulting Technical Analyst,
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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