Thursday, March 19, 2015

Daily Market Trend Guide -- Thursday, March 19, 2015

MARKET REPORT                                                                                    March 19, 2015
Markets ended with a modest loss yesterday as caution grew ahead of FOMC meet outcome. The Markets saw a absolutely flat and quiet note and traded in a capped range with minor losses. After range bound movement in the morning, the Markets attempted to recover from its modest morning losses as it traded flat and in positive territory for a very brief period. It traded absolutely flat in the afternoon trade as caution overweighed the overall sentiments. In the second half of the Markets saw some weakness coming in as it gradually lost some more ground. It went on to form the day’s low of 8664. Some minor recovery was seen but the Markets finally settled the day at 8685.90, posting a modest loss of 37.40 points or 0.43% while continuing to form a higher top and higher bottom on the Daily Bar Charts.

MARKET TREND FOR THURSDAY, MARCH 19, 2015
The Markets are to positively react to the FOMC announcements coming in wherein the rate hike in immediate future, i.e. April seems to be unlikely. Reacting to this, Markets are likely to see a decently positive opening. With such decently positive opening, the support zone of 8620-8660 would continue to remain valid. However, it would be important to see if the Markets maintains these gains and capitalizes on it later.

The levels of 8850 and 8920 would act as immediate resistance for the Markets. The supports would come in at 8620 and 8570 levels.

The RSI—Relative Strength Index on the Daily Chart is 46.3906 and it continues to remain 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 March futures have shed further over 7.43 lakh shares or 3.08% in Open Interest. This signifies some more unwinding of positions. The NIFTY PCR stands at 0.89 as against 0.91 a day earlier.

Coming to pattern analysis, the decently positive opening will keep the support zone of 8620-8660 valid as of now. Also, this will keep the Markets trading comfortably above all of its three moving averages. However, this will also continue to keep the Markets in the overall broad range of consolidation that it has been trading in. In order to continue with its up move, it will have to move past the levels of 8925 with good amount of participation and volumes in order to keep the original trend intact. Currently, the intermediate trend of the Markets remains that of consolidation.

Overall, Markets are all likely to see the positive and nearly gap up opening today. At the same time, it would be necessary for the Markets to maintain those gains and capitalize on it as well. Though this would still keep the Markets in the overall consolidation zone, selective purchases may be made. While keeping a vigilant eye on profits, 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
+91-98250-16331


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