MARKET REPORT December
28, 2015
The Markets were as flat as it could on
Thursday before long weekend as it spent a ranged session and ended the day
with minor losses. The Markets did saw a modestly positive opening but formed
its intraday high of 7888.75 in the early minutes of the trade. After trading
briefly in the green, the Markets pared its opening gains and traded flat. The
most part of the trading session was then spent in a very capped and narrow
trajectory and the Markets headed nowhere during this time. It saw some
weakness creeping in the second half of the session while it made its day’s low
of 7835.50. Markets soon recovered these losses and finally ended the day at
7861.05, posting minor loss of 4.90 points or 0.06% while continuing to form a
higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR MONDAY, December 28,
2015
Markets open today after a long weekend
holiday following Christmas and given the technical indicators, we would
continue to keep the analysis for the coming week more or less on similar
lines. The Markets are expected to open flat and look for directions in the
initial trade and the levels of 7800-7820 would be important to watch out for
as it would be very critically important for the Markets to maintain itself
above these levels. The volumes would continue to remain on lower side due to
year end.
The levels of 7880 and 7925 will act as
immediate resistance for the Markets. The supports come in at 7820 and 7770 levels.
The RSI—Relative Strength Index on the
Daily Chart is 52.8861 and it remains neutral as it shows no bullish or bearish
divergence or any failure swings. The Daily MACD remains bullish as it trades
above it signal line. On the Weekly Charts, the Weekly RSI is 45.3866 and it
remains neutral as well without showing any bullish or bearish divergence or
any failure swings. The Weekly MACD remains bearish as it trades below its signal
line.
On the derivative front, the NIFTY December
futures have shed over 7.15 lakh shares or 4.18% in Open Interest. The January
Series have added over 6.25 lakh shares or
17.95% in Open Interest. The Net change in OI remains very negligible
and the NIFTY PCR stands unchanged at 0.83.
Coming to pattern analysis, the Markets
have attempted to confirm the reversal by giving a higher bottom after pulling
back from its double bottom / 52-week low supports. After pulling back from
those supports, the Markets had a intermediate consolidation and thus giving a
higher bottom, attempted to move up again. Now that it has done so, the levels
of 7800-7820 remain critically important as the Markets will have to maintain
itself above that in order to prevent any weakness from returning once again.
So long as the Markets remain above these levels, the next logical levels that
we can expect are the 50-DMA levels, i.e. 7930.
All and all, though we continue to keep the
analysis on the similar lines like previous week, the levels of 7800-7820
remain critical to watch out for. Also, the volumes are likely to remain lower
and this may keep the Markets devoid of required depth. We may see such lower
volumes in the entire week given the year end days. Over all, while continuing
to make select purchases, positively cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst
Af. Member: Market Technicians Association, (MTA), USA
Af. Member: Association of Technical Market Analysts, (ATMA), INDIA
www.EquityResearch.asia
http://milan-vaishnav.blogspot.com
+91-98250-16331
milan.vaishnav@equityresearch.asia
milanvaishnav@yahoo.com
Consulting Technical Analyst
Af. Member: Market Technicians Association, (MTA), USA
Af. Member: Association of Technical Market Analysts, (ATMA), INDIA
www.EquityResearch.asia
http://milan-vaishnav.blogspot.com
+91-98250-16331
milan.vaishnav@equityresearch.asia
milanvaishnav@yahoo.com
