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The Markets spent an correction session on lower volumes on
Friday as it opened lower and drifted for the remaining part of the entire
session to end yet another day of modest losses. The Markets saw a modestly
negative opening and after opening negative, the Markets converted itself in to
a falling channel and remained in downward trajectory. It went on to form the
gradual lows and by the end of the session, it went on to form the day’s low of
8553. No major recovery was seen and the Markets finally ended the day at
8570.90, posting a net loss of 63.75 points or 0.74% while forming a lower top
and lower bottom on the Daily Bar Charts.
MARKET TREND FOR MONDAY, MARCH 23, 2015
Against the expected levels of 8695 and 8740 as
resistanceand levels of 8620 and 8575
as immediate supports, the market remained more or less in this range previous
For today, Pattern Analysisthrows up some sign of weakness on the Daily High Low chart of Nifty.
The chart exhibits a minor negative breakdown, asmarket failed to cross and close above
important resistance of8644previous trading session.
Markets are poised for a flat opening with no significant
bias on either side.
On Candle Charts, a black body occurredas Market closed lower than they opened and the he
steady downward pattern is bearish.Important indicator MACDis
bearish since it is trading below its signal line. MACDis in this bearishmode since last nine trading sessions.RSI also exhibits some weakness.The current value for the 14 period RSI is
40.4456 has just reached its lowest value in the last 14 period(s).This is bearish as this is aFailure Swing caused bysupportpenetration.
Thus overall,combined technical reading of Nifty signals that weakness will continue
in the markettoday, at least in the
initial trading hours.The up move will
face resistanceat 8644 and markets are
likely to find support at 8513 levels.
It is advisedto be
cautious at every highs today in the Market.
Also worth noting is that markets are approaching its strong
support on charts in forms of Patterns and Moving Averagesand now it remains to be seen whether these
supports are respected or breachedthis
Consulting Technical Analyst, Af. Member: Market Technicians Association (MTA), USA Af. Member: Association of Technical Market Analysts, INDIA