MARKET REPORTU June
09, 2015
Markets wore a completely bearish mask today as well as it
continued to end at the lowest point in 2015 after opening on a flat note. The
Markets opened on a very quiet note and formed its intraday high of 8131 in the
very early seconds of the trade. After remaining momentarily in the positive
zone, it slipped into negative in the early morning trade. It formed a downward
sloping channel thereafter and showed totally bearish directional bias. It was
in the late afternoon trade that the Markets attempted to show some pullback as
it managed to recover over half of its losses, though it continued to remain in
negative territory. However, this recovery was not sustained and the Markets
slipped again to form its intraday low of 8030.55. It finally settled the day
at 8044.15, posting a net loss of 70.55 points or 0.87% while forming a
distinctly lower top and lower bottom on the Daily Bar Charts.
MARKET TREND FOR TUESDAY, JUNE 09, 2015
The Markets are likely to open on a modestly negative to
flat note and will look for directions in the initial trade. Though we continue
to put the analysis on more or less the similar lines, we also put forward mild
possibilities of a attempt to pullback by the Markets given the technical structure
of the Chart as well as the F&O Data. In any case, the levels of 8000 will
continue to remain import support level to watch out for.
The levels of 8110 and 8145 will act as immediate resistance
for the Markets; whereas the levels of 8000 and 7940 are immediate supports.
The RSI—Relative Strength Index on the Daily Chart is
34.9571 and it does not show any bullish or bearish divergence. However, it has
reached its lowest value in last 14-days which is bearish. The Daily MACD
remains bearish as it trades below its signal line.
On the derivative front, the NIFTY June futures have shed
88,200 shares or 0.54% in Open Interest. This figure remains insignificant but
it suggest a very mild tinge of
unwinding of positions.
Coming to pattern analysis, the Markets are nearing its
support of 7997-8000 levels. Any persistent weakness will see the Markets
testing those levels. However, that will also act as a minor double bottom
support for the Markets. Given the PCR of 0.87, and given the lower volumes
with which it is declining, there are strong possibilities that the Markets may
take some sort of at least interim support at this level. Even with some
chances of a possible technical pullback, the Markets will have to maintain
themselves above 8000-levels in order to avoid any psychological weakness to
creep in.
Overall, though the overall structure of the Markets remains
weak, it also poses some faint technical possibilities of a pullback. However,
it would be imperative for the Markets to maintain itself comfortable above
8000-8050 mark. Any breach will bring in further weakness. Fresh bottom buying
may be done but we continue to reiterate to keep overall exposure very low and
stock specific.
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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