MARKET REPORT July
24, 2015
Markets traded yesterday precisely on the analysed lines as
it not only remained volatile and consolidated but ended the day with a modest
losses while continuing to trade within the channel. The Markets saw a quiet and
positive opening and formed its intraday high of 8654.75 in the morning trade.
The Markets traded briefly in the positive territory and then slipped into the
negative zone by afternoon. Markets remained volatile in the afternoon trade as
it slipped and recovered but did not maintain the recovery and slipped again.
It went on to form the day’s low of 8573.80 by late afternoon trade. Some
recovery was seen and the Markets finally ended the day at 8589.80, posting a
modest loss of 43.70 points or 0.51% while forming a higher top and higher
bottom on the Daily Bar Charts.
MARKET TREND FOR FRIDAY, JULY 24, 2015
Technical indicators clearly suggest the Markets to remain
in consolidation in the immediate short term. The Markets are likely to open on
a flat to mildly negative note and look for directions. Fresh up moves shall
occur only above 8650-8675 levels and the Markets are expected to continue to
take support in the channel. The intraday trajectory would be crucial to watch
out for and the Markets are also likely to remain somewhat ingrained with
volatility.
The levels of 8650 and 8675 will act as immediate resistance
for today. The supports come in at 8550 and 8500 levels.
The RSI—Relative Strength Index on the Daily Chart is
60.1949 and it is neutral as it shows no bullish or bearish divergence or any failure
swings. The Daily MACD remains bullish as it continues to trade above its
signal line.
On the derivative front, the NIFTY July futures have seen
shedding of over 7.52 lakh shares or 3.51% in Open Interest. On other had,
August series have seen net addition of over 2.63 lakh shares or 11.51% in OI.
Some net short positions have been observed in NIFTY Futures.
Coming to pattern analysis, the Markets are continuing to
trade in a channel / trading range drawn from the lows of 8000 levels. As mentioned
in our previous editions, the Markets will wait to give a clear breakout
because it trades in a rising channel and the upper trend line keeps rising
every day taking with itself higher the level which the Markets shall need to
move past for a clear breakout. Therefore, until a sharp up move comes, the
Markets are likely to continue to trade in a capped and upward rising channel
with some amount of volatility ingrained in it.
Overall, with the chances of consolidation continuing at
current levels, we continue to reiterate our advice of refraining from heavy
long positions. Selective purchases may be made as stock specific action and
selective out performance would continue. However, more liquidity should be
maintained than taking fresh exposures with high amount of vigil at higher
levels.
Milan Vaishnav,
Consulting Technical Analyst
Af. Member: Market Technicians Association, (MTA), USA
Af. Member: Association of Technical Market Analysts, (ATMA), INDIA
www.EquityResearch.asia
http://milan-vaishnav.blogspot.com
Consultant to:
www.MyMoneyPlant.co.in
+91-98250-16331
milan.vaishnav@equityresearch.asia
milanvaishnav@yahoo.com
Consulting Technical Analyst
Af. Member: Market Technicians Association, (MTA), USA
Af. Member: Association of Technical Market Analysts, (ATMA), INDIA
www.EquityResearch.asia
http://milan-vaishnav.blogspot.com
Consultant to:
www.MyMoneyPlant.co.in
+91-98250-16331
milan.vaishnav@equityresearch.asia
milanvaishnav@yahoo.com
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.