MARKET
REPORT June
17, 2015
The Markets saw a
sharp up move in the final hour of the trade as it maintained the support at
8000-levels at Close and ended the day with modest gains. The Markets saw
negative opening on expected lines and continued to trade with negative bias in
a very capped and narrow range. It traded in negative territory in sideways
manner and in the afternoon trade went on to form the day’s low of 7952.35. It
was in the last 90-minutes of the trade that the Markets attempted to recover
again. It recovered from the low point of the day and not only managed to go in
to the positive territory but also formed the day’s high at 8061.85 rising over
110-odd points from the day’s low. It finally settled the day at 8047.30,
posting a net gain of 33.40 points or 0.42% while forming a mildly higher top
and higher bottom on the Daily Bar Charts.
MARKET
TREND FOR WEDNESDAY, JUNE 17, 2015
Today, expect the
Markets to open on a modestly positive note and there are chances that it
continues with its up move, at least in the initial trade. However, the Markets
have been lacking in conviction and volume and therefore it would still be
critical to observe that the Markets maintains itself above the 8000-mark. Even
if the Markets continue to remain in a continuing downtrend, some technical
pullback is likely.
For today, the
levels of 8090 and 8150 will act as immediate resistance whereas the levels of
8000 and 7950 will act as supports.
The RSI—Relative Strength
Index on the Daily Chart is 40.6832 and it remains neutral as it shows no bullish
or bearish divergence or failure swings. The Daily MACD continues to remain
bearish as it trades below its signal line.
On the derivative
front, the NIFTY June futures have shed over 3.46 lakh shares or 2.18% in Open
Interest. This signifies the up move has taken place due to short covering from
lower levels. However, the total stock futures have added 2.2 crores shares in
OI and the NIFTY PCR stands unchanged at 0.89.
Coming to pattern
analysis the Markets have managed to hand on to the supports of 8000-levels
which is acting as a minor double bottom support. Speaking purely on technical
terms, the Markets are currently in intermediate downtrend and such trend
typically last from three weeks to three months. The F&O data continues to
show tentative fabric of the Markets but again, speaking purely on technical
terms, the Markets may show some technical pullback and continue with its
attempts to form a potential bottom at these levels. Therefore, the behaviour of
the Markets vis-à-vis the levels of 8000-mark continues to remain critical in
near future.
Overall, though
the Markets have moved past the 8000-mark and trades inside its broad trading
range, it has done so while shedding the Open Interest. This keeps it
vulnerable to selling bouts from higher levels. The Markets will have to show
some good volumes and participation which it has been lacking so for while
making up moves. However, there are chances that the Markets see technical
pullback even while continuing to remain in present intermediate downtrend.
Continuation of cautious optimism 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
