Monday, March 23, 2015

Daily Market Trend Guide -- Monday, March 23, 2015

MARKET REPORT                                                                                      March 23, 2015
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.

Against the expected levels of 8695 and 8740 as resistance  and levels of 8620 and 8575 as immediate supports, the market remained more or less in this range previous trading session.

For today, Pattern Analysis  throws up some sign of weakness on the Daily High Low chart of Nifty. The chart exhibits a minor negative breakdown, as  market failed to cross and close above important resistance of  8644  previous trading session.

Markets are poised for a flat opening with no significant bias on either side.

On Candle Charts, a black body occurred  as Market  closed lower than they opened and the he steady downward pattern is bearish.  Important indicator MACD  is bearish since it is trading below its signal line. MACD  is in this bearish  mode 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 a  Failure Swing caused by  support  penetration.

Thus overall,  combined technical reading of Nifty signals that weakness will continue in the market  today, at least in the initial trading hours.  The up move will face resistance  at 8644 and markets are likely to find support at 8513 levels.

It is advised  to 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 Averages  and now it remains to be seen whether these supports are respected or breached  this week.

Milan Vaishnav,
Consulting Technical Analyst,
Af. Member: Market Technicians Association (MTA), USA
Af. Member:
Association of Technical Market Analysts, INDIA