MARKET REPORT April
07, 2015
The Markets traded precisely on the
analysed lines as it opened quiet, traded directionless in the first half of
the session but ended the day on a buoyant note. The Markets saw a quiet
opening and post such openings traded in a very capped and narrow 20-odd point
range until afternoon while slipping in and out of the positive territory. It
formed its day’s low of 8573.75. The seconde half of the session, Markets once
again saw sustained strength returning. It crawled back into the positive
territory and then kept gradually forming new intraday highs. It went on to
form the day’s high of 8667.55 and while
sustaining these levels, it finally ended the day at 8659.90, posting a net
gain of 73.65 points or 0.86% while continuing to form a higher top and higher
bottom on the Daily Bar Charts.
TECHNICAL ANALYSIS OF NIFTY
AND MARKET TREND FOR TUESDAY, APRIL 07, 2015
Today remains a crucial day for the
Markets. Expect the Markets to open on a modestly positive note and look for
directions with a mild upward bias. The expected positive opening would see the
Markets opening near its 50-DMA levels and therefore it would be important to
see the behaviour of the Markets vis-à-vis this level. Further Markets would
also react to the RBI Policy review slated to come in later today.
The levels of 8720 and 8745 would
act as immediate resistance levels for the Markets. The supports come in at
8640 and 8570 levels.
The RSI—Relative Strength Index on
the Daily Chart is 52.3867 and it has reached its highest value in last 14-days
which is bullish. Further, the RSI has set a fresh 14-period high while the
NIFTY has not yet and this is Bullish Divergence. As expected and mentioned in
our yesterday’s edition, the Daily MACD has reported a positive crossover. It
his now bullish trading above its signal line.
On the derivative front, the NIFTY
April futures have further shed over 3.70 lakh shares or 1.95% in Open
Interest.
Returning to pattern analysis, the
Markets moved past one of its important pattern resistance of 8640. With today’s
mildly positive opening expected, it would open near its 50-DMA levels. There
is great likelihood that the Markets consolidate around these levels. The
consolidation would in fact make the Markets healthier and the possibility of
the Markets consolidating rather than continuing to move up increases as it has
been shedding Open Interest in the previous sessions.
All and all, the Markets would see
a modestly positive to quiet opening. It is likely to trade in a given range
before it reacts to the RBI Policy review. The reaction would be more to the
guidance issued as majority of the participants expects a status quo on the
rate scenario. With the likelihood of the Markets consolidating on the higher
levels, it is advised to keep booking profits on every rise now while keeping
the fresh purchases limited and selective.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.