Daily Market Trend Guide -- Thursday, July 16, 2015

MARKET REPORT                                                                                       July 16, 2015

The Markets had a very steady and sturdy session yesterday as it opened into positive and ended the day with decent gains while moving past its 100-DMA as well. The Markets saw a positive opening and soon strengthened further in the morning trade. The Markets travelled into positive territory while amassing decent gains by late morning trade and thereafter spent nearly entire session in a sideways trajectory. By afternoon, the Markets went on to form the day’s high at 8531.40. These levels were sustained successfully by the end and the Markets finally ended the day at 8523.80, posting a decent gain of 69.70 points or 0.82% while forming a higher top and higher bottom on the Daily Bar Charts.

MARKET TREND FOR THURSDAY, JULY 16, 2015

The Markets are likely to see a flat but stable opening today. The technical indicators suggest the Markets are likely to continue with its up move and may remain overall stable. In event of any consolidation, the 100-DMA will act as support. However, the Markets are likely to trade with upward bias. The volumes and the intraday trajectory that the Markets forms post opening would be crucial to watch out for.

The levels of 8560 and 8610 are immediate resistance levels for the Markets. The supports come in at 8460 and 8430 levels.

The RSI—Relative Strength Index on the Daily Charts is 61.3611 and it does not show any failure swings. However, the NIFTY has set a fresh 14-period high whereas the RSI has not yet and this is Bearish Divergence. The Daily MACD continues to remain bullish as it trades above its signal line.

On the derivative front, the NIFTY July futures have added further over 6.20 lakh shares or 3.13% in Open Interest. The NIFTY PCR stands at 1.14 as against 1.07.

Coming to pattern analysis, the Markets are likely to continue to remain its 100-DMA and in event of any consolidation at higher levels, the levels of 100-DMA will continue to act as support. The Markets have a minor pattern resistance at 8560 levels and we might see some minor consolidation taking place around those levels. However, the overall structure of the Markets continue to portray a bullish undertone.

Overall, the Markets might see a flat opening but is likely to remain more or less stable and might continue to trade with an overall upward bias. However, 8560 would be the levels to watch out for as the Markets may face some minor resistance and see some consolidation happening around that level. However, sectoral out performance will continue and any consolidation or minor dips can be utilized for fresh selective buying.

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
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