MARKET REPORT April
27, 2015
The Markets nearly tested its 200-DMA as it had an utterly
disappointing session on Friday as it continued to once again end the day with
losses. The Markets saw a weak opening and following such weak opening drifted
further into the morning trade to trade with modest losses. The Markets
continued to trade with losses in a sideways trajectory while making no
attempts of whatsoever nature to recover during the day. In the second half of
the session, the Markets saw some more weakness creeping in as it weakened
further and went on to form the day’s low of 8273.35 in the final hour of the
trade. However, some modest recovery was observed but the Markets finally ended
the day at 8305.25, posting a net loss of 93.05 points or 1.11% while forming a
lower top and lower bottom on the Daily Bar Charts.
MARKET TREND FOR MONDAY, APRIL 27, 2015
The analysis for today continues to remain more or less on
similar lines as the Markets are likely to open on a quiet note and the levels
of 200-DMA would be critical levels to watch out for. The Markets are expected
to take support at these levels. It is very important to note that the current
downsides in the Markets are being contributed to possibility of weak monsoon
and weak corporate earnings. However, the other internal reason is also the
retrospective tax demand on FPIs on which government has been conveniently
changing stands.
For today, the levels of 8420 and 8455 are likely to act as
immediate resistance levels for the Markets. The support would come in at 8250
and 8210 levels.
The RSI—Relative Strength Index on the Daily Chart is
33.6920 and it has reached its lowest value in last 14-period which is bearish.
It does not show any bullish or bearish divergence. The Daily MACD continues to
remain bearish trading below its signal line. On the Weekly Charts, the Weekly
RSI is 46.7421 and though it does not show any bullish or bearish divergence,
this too has reached its lowest value in last 14-weeks which is bearish. The
Weekly MACD remains bearish trading below its signal line.
On the derivative front, NIFTY April futures have further
shed 8.24 lakh shares in Open Interest.
Coming to pattern analysis, the Markets nearly tested its
200-DMA on Friday and today as well, this level is expected to act as major
support for the Markets. Over and above this, it becomes very important to note
that the Markets have totally disregarded the 100-DMA and 50-DMA by failing to
resist or take support in the previous sessions. This makes it very evident
that the Markets are being subjected to unnatural movements and the major
reason is the irresponsible handling of the retrospective tax demands on the
FPIs. Otherwise, all other global markets continue to trade near their highs.
We have seen a major performance divergence with our Markets.
All and all, given this fact, it happens that the Markets
tend to completely disregard the technicals. However, one can expect the level
of 200-DMA to play out as support. Further, on the Weekly Charts, the Markets
continue to trade above all of its moving averages. Continuing with the advice
of refraining from aggressive positions on either side and maintaining
liquidity, cautious outlook is advised for today.
