MARKET REPORT February
19, 2015
Markets continued with its up move for the sixth day in a
row ahead of Union Budget coming up later this month as it ended yet another
day with modest gains. The Markets saw better
than expected positive opening an after trading with capped gains in the
morning trade, it moved up further. The Markets spent the first half of the
session trading with capped gains and moved in sideways trajectory. It was in
the last hour and half of the trade that the Markets saw some good amount of
strength coming in as it managed to move up further. It went on to form the
day’s high 8894.30 in the final minutes
of the trade. However, some minor paring of gains was seen as the Markets
finally ended the day at 8869.10, posting a net gain of 59.75 points or 0.68%
while forming a slightly higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR THURSDAY, FEBRUARY 19, 2015
Today’s analysis continues to remain on similar lines that
of yesterday. Markets are likely to see a quiet and mildly positive opening and
is likely to trade positive at least in the initial trade. However, though the
Markets have clear room for upside, the quantum of caution would increase as it
approaches its upper rising channel. Volatility is likely to stay in the
immediate short term.
The levels of 8894 and 8940 would act as resistance. The
supports would come in much lower at 8790 and 8725 levels.
The RSI—Relative Strength Index on the Daily Chart is 64.0798
and it remains neutral as it shows no bullish or bearish divergence or any
failure swing. The Daily MACD remains bearish as it trades below its signal
line. However, it is likely to post a positive crossover in coming session if
the Markets keep its trend intact.
On the derivative front, NIFTY February futures have shed
over 5.01 lakhs shares or 1.92% in open interest. The NIFTY PCR stands at 0.97
as against 0.95 yesterday.
Coming to pattern analysis, the Markets are steadily
approaching the upward rising trend line which would resist anywhere from 8930
levels onwards. Until this happens, the Markets are likely to continue with its
up move. As these levels approaches, we can see some amount of consolidation /
mild profit taking at higher levels, even while the Markets keeps the overall
trend intact.
All and all, the secular overall trend in the Markets remain
intact as of now. However, some amount of volatility would increase as the
Markets inches upwards. Some selective purchases may be made as stock specific
action would be seen and sectoral out performance especially in the defensives
would continue. Overall, while protecting profits at each higher level,
positive outlook 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
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