MARKET REPORT April
10, 2015
Markets continued to surge ahead
and ended with gains for the fifth day in a row though it continued to resist
to its 50-DMA for the most part of the session. The Markets saw a modestly
positive opening on the expected lines but soon dipped into the red to form the
day’s low of 8682.45 in the morning trade. However, it managed to crawl back
into the green wherein it traded in positive territory until afternoon, though
in a very capped and narrow range. The Markets pared those gain trade flat.
However, in the late afternoon trade, the Markets saw itself surging on the
upside again and this time, it went on to move past its 50-DMA levels which it
had been resisting for the most part of the session. It went on to form the
day’s high of 8785.50. In the process, these levels were sustained and the
Markets finally settled the day at 8778.30, posting a net gain of 63.90 points
or 0.73% while continuing to form higher top and higher bottom on the Daily Bar
Charts.
MARKET TREND FOR FRIDAY,
APRIL 10, 2015
We can expect a flat to quiet opening
once again today and the Markets are generally likely to trade with a positive
bias. Though it has moved past the levels of 50-DMA, some amount of
consolidation at higher levels still cannot be ruled out with the levels of
50-DMA acting as support. Even in case of any consolidation, the overall bias
of the Markets would continue to remain on the upside.
The levels of 8820 and 8865 would
act as resistance. The levels of 8720 and 8675 would act as immediate supports
for the Markets.
The RSI—Relative Strength Index on
the Daily Chart is 59.0135 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 trading above its signal line.
On the derivative front, the NIFTY
APRIL Futures have shed 96,500 shares or 0.50% in Open Interest. This remains a
negligible figure and one can conclude that no major short covering was seen
from lower levels yesterday.
Coming to pattern analysis, the
Markets have managed to move past the level of 50-DMA and in event of any consolidation,
this level is likely to act as support. Barring possibilities some
consolidation from higher levels, the overall bias of the Markets certainly
remains on the upside. The Markets encounters some minor pattern resistances in
between, is likely to consolidate and likely
to move up again. As mentioned often in our previous editions, consolidation
would be required and in fact, healthy for the Markets.
Overall, the day remains crucial as
the Markets approaches minor pattern resistances. With the quantum of the
pullback that we have seen from March 27th lows, even if the Markets
consolidates, it would display strength by doing so and would be healthy in the
immediate short term. Some amount of volatility is likely to remain ingrained
in the Markets. While continuing to make select purchases, cautious outlook is
advised for the day.
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
