MARKET REPORT June
10, 2015
The Markets had a very lackluster session
as it spent the day in a very narrow and capped range while almost testing the
double bottom support of 8000-levels. The Markets saw a modestly negative
opening but soon crawled into the positive territory in the morning trade while
forming the day’s high of 8057.15. The
Markets again slipped into the red after a very brief trade in the positive
territory and after this the Markets spent nearly entire session trading very
flat and in a capped range and spending very brief periods in the positive. It
lost ground in the final hour and half of trade and slipped little more to form
the day’s low of 8005.15. Modest recovery was seen from these levels and the
Markets finally settled the day at 8022.40, posting a modest loss of 21.75
points or 0.27% while forming a lower top and lower bottom on the Daily Bar
Charts.
MARKET TREND FOR WEDNESDAY, JUNE 10,
2015
Today, we once again continue to keep the
analysis on similar lines that of yesterday. We can expect the Markets to open
on a flat note and would expect it to improve as we go ahead in the session.
Though the Markets may trade range bound in the initial trade, the levels of
8000 will still continue to act as major support. The decision of MSCI to not
to include China A-Class shares will also aid the sentiment as this action
would also have impacted Dollar outflows from the Indian Markets.
For today, the levels of 8060 and 8125 will
act as resistance whereas the levels of 8000 and 7940 will act as supports.
The RSI—Relative Strength Index on the
Daily Chart is 34.0677 and this has reached the lowest value in last 14-days
which is bearish. However, it does not show any bullish or bearish divergence.
The Daily MACD remains bearish as it trades below its signal line.
On the derivative front, the NIFTY June
futures have shed over 1.32 lakh shares or 0.81% in Open Interest. This denotes
mild unwinding of positions.
Coming back to pattern analysis, the
Markets have nearly tested its double bottom support of 8000 levels and this
support level continues to remain a important support – both technically and
psychologically. Any breach below this is likely to cause some more weakness in
the immediate short term. However, given the lead indicators on the Charts, the
F&O data and the currency move suggest that we are very much likely to take
support at this level, at least for the immediate short term.
All and all, as mentioned, the Markets will
have to maintain itself above the 8000 level in order to avoid any weakness
from creeping in. The behavior of the Markets vis-à-vis the levels of 8000
would be crucially important to watch out for. Selective bottom hunting can be
done in select stocks as overall the Markets are likely to remain very much
stock specific. With expectation of support to hold through, cautious optimism
is advised for the day.
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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