Thursday, December 25, 2014

Daily Market Trend Guide -- Friday, December 26, 2014

MARKET REPORT                                                                              December 26, 2014
After spending the most part of the session in a sideways trajectory, the Markets saw a rollover instigated jitters as it ended the day with losses. The Markets saw a quiet opening and traded positive in the morning trade.  It traded with modest gains while it formed the day’s high of 8286.40. However, while resisting at these levels the Markets soon returned to its previous close levels to trade flat. Later in the afternoon trade, the Markets dipped slightly in the negative but over all continued to trade with capped and limited losses while moving in sideways trajectory. However, last half an hour of trade saw rollover dominated jitters as the Markets very suddenly pared ground in a near-parabolic manner. It went on to form the day’s low of 8155.25 towards the end. It finally settled the day at 8174.10, still posting a net loss of 92.90 points or 1.12% while forming a lower top and lower bottom on the Daily High Low Charts.


MARKET TREND FOR FRIDAY, DECEMBER 26, 2014

The Markets would open after Christmas holiday but only for Friday’s session to be followed again by a weekend. The Markets are likely to see quiet opening and no major moves are expected as the volumes are expected to remain on lower side due to holidays. However, it would continue to resist to its 50-DMA levels again on the upside as it has closed below that.

The levels of 8258 and 8290 would act as resistance on the upside while the levels of 8085 would act as support in form of its 100-DMA.

The RSI—Relative Strength Index on the Daily Chart is 42.8010 and it remains neutral as it shows no bullish or bearish divergence or failure swings.  The Daily MACD continue to remain bearish while trading below its signal line.

On the derivative front, the NIFTY January series have added over 49.18 lakh shares or 30.85% in Open Interest. The overall NIFTY and Market wide rollovers have remained slightly below its 30-month average.

Returning to pattern analysis, the Markets have dipped below its 50-DMA level again and therefore this level would act as resistance on its way up again. It would be very necessary for the Markets to move up and past this level in order to avoid any weakness from creeping in again. On the downside, the levels of 100-DMA remains a major support for the Markets.

Overall, given the near-absent volumes again, the Markets are less likely to see any major downsides again. However, the volumes would continue to remain lighter due to holidays and truncated trading week. It is advised to continue to remain light on positions and maintain liquidity. Purchases should be restricted to selective stocks and shorts should be strictly avoided as the overall trend continues to still remain intact.

Milan Vaishnav,
Consulting Technical Analyst,
Af. Member: Market Technicians Association (MTA), USA
Af. Member:
Association of Technical Market Analysts, INDIA

www.MyMoneyPlant.co.in
+91-98250-16331

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