MARKET REPORT February
26, 2015
What started off as a strong session for the Markets turned
out to be yet another consolidation as the Markets pared all of its gains to
end the day on an absolutely flat note. The Markets saw a decently strong
opening and soon formed its intraday high at 8840.65 in the morning trade. The
Markets more or less maintained these gains as it then traded in a capped range
in sideways trajectory. It did lose some ground in the afternoon trade but the
second half of the session saw sharp paring of gains. The Markets pared all of
its gains and also dipped marginally into the red forming the day’s low of
8751.40. It finally ended the day at 8767.25, posting a net minor gain of 5.15
points or 0.06% while forming a higher top and higher bottom on the Daily Bar
Charts.
MARKET TREND FOR THURSDAY, FEBRUARY 26, 2015
Today, we enter into expiry of the current derivative
series. Over and above all, we begin a three days of eventful remaining week as
well. First Railway Budget from the current government comes up today later. The
Markets are likely to open on a flat note and is expected to trade in a range
and would see volatile movements as the proposals start pouring in. Coupled
with this, being expiry today, we would continue to see the session heavily
dominated with rollover centric activities.
The levels of 8870 and 8900 would act as immediate
resistance for the Markets. The supports come in at 8730 and 8640 levels.
The RSI—Relative Strength Index on the Daily Chart is
55.2173 and it is neutral as it shows no bullish or bearish divergence or any
failure swings. The Daily MACD remains bearish trading below its signal line.
On the derivative front, the NIFTY February futures shed
over 33.41 lakh shares or 23.32% in OI wherein the March series added over
43.96 lakh shares or 28.61% in Open Interest. The rollovers have continued to
remain higher than their 3-month average and indicate a bullish under tone.
Taking a cue from pattern analysis, the Markets, after
pulling back from its 50-DMA levels, are continuing to consolidate below its
rising trend line which would pose some resistance on its way up after
8940-levels. However, while doing this, the Markets are also in very cautious
mode ahead of major economic event such as Union Budget. In event of any up
move, the levels of 8900-8950 would pose pattern resistance fro the Markets. In
event of any downside or in event of any major upside trigger, the Markets will
continue to oscillate with the levels of 8640 acting as important support.
Overall, keeping the analysis more or less on similar lines,
we continue to reiterate our advice to refrain from creating over-exposures in
the Markets. Buying should be restrained to very selective stocks. While
continuing to keep overall exposure at as much moderate levels as possible,
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
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