MARKET REPORT July
03, 2015
The Markets had a
very range bound session yesterday as it chose to consolidate after pullbacks
as it ended the day on a very minor loss. The Markets saw opening much on
expected lines which was very flat. Post flat opening the Market soon slipped
modestly into negative. Soon it managed to crawl back into positive territory
and went on to form the day’s high of 8479.25. The Markets continued to resist
to its 100-DMA levels and came off from the high point of the day. It also went
on to slip into negative and formed day’s low of 8433.20. After spending the
entire session in 43-odd points range, the Markets finally settled the day at
8444.90, posting a minor loss of 8.15 points or 0.10% while forming a similar
top but higher bottom on the Daily Bar Charts.
MARKET
TREND FOR FRIDAY, JULY 03, 2015
The Markets have
continued to resist to its 100-DMA levels and it is likely to continue to do so
today as well. We can expect a quiet opening in the Markets and the Markets are
likely to exhibit a ranged trade today and some amount of caution will clearly prevail
over the weekend ahead of out come of the Greek Referendum. However, this will
be a range bound caution with no major downside expected until something totally
unexpected comes out from the global arena.
The levels of
8471 and 8525 will act as immediate resistance for the Markets. The supports
will come in at 8420 and 8376 levels.
The RSI—Relative Strength
Index on the Daily Chart is 61.14048 and it remains neutral as it shows no
bullish or bearish divergence or any failure swings. The Daily MACD continues
to remain bullish as it trades above its signal line.
On the derivative
front, NIFTY July futures have shed 50,300 shares or a nominal 0.30% in Open
Interest. This does not signify any major reduction of positions on either
side.
Coming back to
pattern analysis, the Markets have consolidated after moving past the 200-DMA.
It has done so after forming a higher bottom post taking support near 7950-8000
zones. It would not be a surprise that the Markets may consolidate a bit more
but in any case the levels of 200-DMA should continue to exist as a import
support for the Markets if it has to confirm the bottoms that it has made in
recent past.
Overall, the
Markets are likely to exhibit a range bound trade and some amount of caution is
certainly to weigh in on account of a weekend. However, if we see the
underlying data, the Markets are looking for a slight trigger and they may see
resuming their up move in the next week. The eyes are on the developments in
Greece and in absence of any negative news flow, the technical indicators
clearly suggest that we may see some more up sides in the Markets. As of today,
cautious outlook with very modest stock specific action is advised.
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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