MARKET REPORT April
17, 2015
The Markets continued to see corrective activity yesterday
as well and ended the second day with losses though it did recover from the low
point of the day and the levels of 50-DMA did held out as support at close levels.
The Markets saw a flat opening and then remained in falling trajectory for the
most part of the day while it kept making fresh gradual lows. In the afternoon
trade, the Markets went on to form the day’s low of 8645.65. However, the
second half of the session saw the Markets attempting some recovery. The
Markets did in fact recovered bulk of its day’s losses but the last half hour
of trade saw some pressure being exerted on the Markets again. However, the
Markets ended the day at 8706.70 registering significant recovery but with net
losses of 43.50 points or 0.50% while continuing to form lower top and lower
bottom on the Daily Bar Charts.
MARKET TREND FOR FRIDAY, APRIL 17, 2015
Today’s analysis remains more or less on similar lines. We
can expect the Markets to open on a flat and quiet note and look for
directions. Though we can expect a range bound trade in the morning, the behaviour
of the Markets vis-à-vis the levels of 50-DMA which is 8708 today would be very
crucial. It would be important for the Markets to maintain levels above this so
as to avoid any further weakness from creeping in.
The levels of 8760 and 8815 will act as immediate resistance
on the Charts. The supports come in at 8640 levels.
The RSI—Relative Strength Index on the Daily Chart is
52.3584 and it remains neutral as it shows no bullish or bearish divergence or
any failure swing. The Daily MACD continues to remain bullish trading above its
signal line.
On the derivative front, NIFTY April Futures have shed
52,600 shares or nominal 0.27% in Open Interest. This remains a negligible
figure and it appears that significant amount of shorts still continue to exist
in the system.
Coming to pattern analysis, the Markets have corrected for
the second day after seven days of gains of over 400-odd points. From technical
point of view, this correction is healthy and the Markets have so far continue
to remain above its critical supports. The Markets have held on to its 50-DMA
as support at Close levels. The Markets have another important pattern support
at 8640 levels. Even if the Markets continue to consolidate for some more time,
there is no structural breach of any major levels as yet. Overall, even some
consolidation goes on or some minor downside is seen, it would be healthy correction
while keeping the original trend intact.
Overall, while keeping the analysis on more or less the same
lines, we continue to reiterate to avoid shorts in the Markets as short traps
at lower levels can occur as significant amount of short positions are seen in
the Markets. Like yesterday, while keeping the purchases limited adequate
liquidity should be maintaining while adopting cautious optimism in the
Markets.
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
