MARKET
REPORT July
02, 2015
Much on the
expected lines, the Markets had a steady session yesterday as it surged some
more to end the day with decent gains. The Markets had a better than expected
opening and saw it opening modestly in the positive. Post this modestly
positive opening, the Markets remained in a upward rising trajectory throughout
the session. It kept making fresh gradual highs during the day. It was in the
last hour and half of trade that the Markets collected some more strength to
form the day’s high of 8481.60. It did came off a bit in the final moments of
trade but finally ended the day at8453.05, posting a decent gain of 84.55
points or 1.01% while continuing to form a higher top and higher bottom on the
Daily Bar Charts.
MARKET
TREND FOR THURSDAY, JULY 02, 2015
The Markets
continues to pose itself at an interesting juncture. The Markets are likely to
open on a flat and quiet note and would look for cues again and it would do so
with a upward bias. The Markets moved past the 200-DMA yesterday at Close and
have halted at its 100-DMA which is 8474.05. This level will act as resistance
at Close levels. However, the Markets have nearly confirmed the bottom that it
had formed at 7950-8000 mark if it moves past this resistance as well.
For today, the
levels of 8474 and 8565 are immediate resistance for the Markets. Support would
come in at 8374 and 8340 levels.
The RSI—Relative
Strength Index on the Daily Chart is61.7653 and it has reached its highest
value in last 14-days which is bullish. It does not show any bullish or bearish
divergence. The Daily MACD remains bullish as it continues to trade above its
signal line.
On the derivative
front, NIFTY July has continued to add further over 6.96 lakh shares or 4.26%
in Open Interest. This is a very positive indication as it signifies that the
Markets have continued to see yesterday’s surge on account of fresh buying.
Coming to pattern
analysis again, the Markets have managed to move past the levels of 200-DMA at
Close levels and this level is likely to act as support in event of any
temporary consolidation. If we take a look over previous sessions, the Markets
have formed a bottom near its double bottom support in the range of 7950-8000
levels. It pulled back, declined a bit, formed a higher bottom at 8195 and has
moved up again. This structure has more or less confirmed the potential bottom
that the Markets formed last month. The key would be to see that the Markets
maintains itself above 200-DMA in event of any temporary consolidation.
All and all, all
indicators look perfectly in place along with global news flows. It is likely
that the Markets consolidate a bit after the serious pullbacks that it saw in
last three sessions. However, all underlying indicators point towards
continuing uptrend in the Markets. One may continue to make fresh selective
purchases while protecting profits at higher levels. Consolidation, if any,
would be in form of ranged sideways movement with some volatility but any major
downside looks limited at this juncture.
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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