Daily Market Trend Guide -- Tuesday, September 22, 2015

MARKET REPORT                                                                                September 22, 2015

Markets heavily consolidated as it ended on a flat note but had to recover all of its losses post a weak and near gap down opening. The Markets saw a very weak opening as it opened nearly just less than a percent down following mixed global cues. However, post opening the Markets formed its day’s low of 7908.35 in the early minutes of the morning trade. Thereafter, the Markets remained in upward rising trajectory throughout the session. It slowly but steadily recovered all of its morning losses. Though it remained in sideways trajectory in the afternoon trade, by the end of the session, it had managed to recover all of its losses and also traded positive for a very brief period while it formed its intraday high of 7987.90. It hovered around those levels for a while and finally ended the day at 7977.10, posting a very flat close with negligible loss of 4.80 points or 0.06% while forming a lower top lower bottom on the Daily Bar Charts.

MARKET TREND FOR TUESDAY, SEPTEMBER 22, 2015

We can expect a relatively quiet opening today as the Markets are likely to open on a flat note. However, the opening levels are likely to be the near the resistance levels as evident from the Daily C hart and therefore it would be important to see the trajectory that the Markets form post opening. The F&O data suggest both volatility and the possibility of trading in a capped range. The rollovers would continue to dominate the session.

For today, the levels of 7995 and 8050 will act as immediate resistance levels for the Markets. Supports come in at 7920 and 7880 levels.

The RSI—Relative Strength Index on the Daily Chart is 49.9930 and it remains neutral as it shows no bullish or bearish divergence or any failure swings. The  Daily MACD remains bullish as it trades above its signal line.

On the derivative front, rollovers continued as the NIFTY September futures shed over 27.35 lakh or 12.52% in Open Interest whereas the October series added over 37.82 lakh shares or 125.79% in Open Interest. The NIFTY PCR stands at 1.00, remaining unchanged.

Coming to pattern analysis, as evident from the Charts, the Markets continued to resist precisely in the 7960-8000 levels. Today’s opening is likely to remain around those levels and therefore the trajectory that the Markets forms post opening would be crucial to watch out for. Having said this, on the upside, some significant pattern resistance too exists near 8050 levels as the Markets may also resist to the gap that it had created earlier which has not yet been filled in. This space can act as major pattern resistance in coming days.

Overall, keeping the overall technical structure in view, the Markets may move up to test its previous resistance levels mentioned above but may not see a very significant up move before expiry. Whereas with some space existing on the downside, the Markets still continues to remain without any directional bias and in a broad trading range. It is advised to continue to remain very moderate on exposures with highly selective approach.

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

+91-98250-16331
milan.vaishnav@equityresearch.asia
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