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
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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