Thursday, March 19, 2015

Daily Market Trend Guide -- Thursday, March 12, 2015

Daily Market Trend Guide                                                        Thursday, March 12, 2015
MARKET REPORT            March 11 2015

As expected, correction continued in the market .The Markets yesterday started the session on a shaky note. It opened  in mild positive zone, but as foretold,  started losing ground in first hour of trade.
The session was volatile. The market encountered selling pressure at every rise, especially  post noon session wherein it  attempted a sharp pull back but met with selling at intraday high levels of the day resulting into equally sharp intraday correction. The market finally managed to close almost flat at 8699, with  loss of 12 points.
The correction, which was foretold from here , continued for the third consecutive trading session.

MARKET TREND FOR THURSDAY, MARCH 12, 2015

Technically speaking, previous trading session has thrown an important  Pattern Analysis reading.  In spite of  high volatility, and selling pressure at higher levels, the Market took support intraday at 8682 . This intraday support is almost the same that of an earlier previous session. Also, it is very near to its important support levels of 8644 as  depicted by the  Daily  High Low charts of Nifty.

Also important is the  50 Day Exponential Moving  Average of Nifty, which is 8671 as of today.  50 Day Simple   Moving Average,  as of today is 8647.90.   Pattern Analysis clearly indicates that market in taking intraday support in range of these Moving Averages. Hence, till  these are breached, it  can be considered support zone  intraday and at close for the market.

If these support zone is breached by the market, very strong support exists  first at 8644 and then at 8504 levels. This zone will act as  good support for the market in case of continuing  correction.

Currently the MACD is bearish since it is trading below its signal line. However, The MACD is not in an Overbought zone. RSI – Relative Strength Index, has just reached its lowest value in the last 14 periods, and suffers from Failure Swings. This is bearish. Also, The RSI has set a new 14-period low while the security price has not.  This is a bearish divergence.

With this technical reading of Important Indicators, it should be concluded that correction may continue, at  least intraday, for a day or two. Till the above  reading of RSI continues, the Market will face  tough resistance and selling pressure at higher  levels.

During this  mode of correction, the market is expected to take support at the levels mentioned above as depicted by Pattern Analysis.
The Markets are expected to open on a flat to slightly positive note today. However, today also, we repeat that, we can expect some stability to come in but in any case volatility would continue to remain embedded in the Markets in the immediate short term. We continue to reiterate our advice on curtailing exposures at moderate levels.

Keep booking profits, if any, at every rise and be very cautious at every  intraday high of the market today.

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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