Tuesday, April 21, 2015

Daily Market Trend Guide -- Tuesday, April 21, 2015

MARKET REPORT                                                                                April 21, 2015
The Markets continued to display heavy bearish undertone and continued to decline for the fourth day in a row and ended the day with a deep cut. The Markets, as it had been doing on previous three occasions, opened on a modestly negative note. Post such modestly negative opening, the Markets spent the first half of the session once again in a capped range and with relatively limited losses. Just when it seemed that the Markets may make a feeble attempt to recover, it saw some fierce selling pressure coming in once again and saw the Markets continuing to form fresh lows. It went on to form the day’s low of 8422.75 towards the end of the session. With no major recovery coming in, the Markets ended the day at 8448.10, posting a net loss of 157.90 points or 1.83% while continuing to form a lower top and lower bottom on the Daily Bar Charts.

MARKET TREND FOR TUESDAY, APRIL 21, 2015
Markets have continued to remain in bearish grip for yesterday as well and ended the fourth day with losses. Today as well, there aren’t any positive triggers but at the same time, we can once again expect a quiet start to the Markets. The Markets have closed below its 50-DMA and 100-DMA and b of these levels would now act as resistance on its way up.

For today, the levels of 8490 and 8565 would act as immediate resistance whereas the supports come in much lower at 8390 and 8325 levels.

The RSI—Relative Strength Index on the Daily Chart is 38.1216 and it continues to remain neutral while showing no bullish or bearish divergence or failure swings. The Daily MACD remains bearish trading below its signal line.

On the derivative front, the NIFTY April futures have shed 49,750 shares or nominal 0.24% in Open Interest. These figures, individually remains insignificant. However, we have seen that the Markets have piled up huge amount of short positions while on its decline and this means that there are lot of shorts that exist in the system. This also means that there has been selling in Cash segment which is, in turn, hedged with heavy shorts in the futures.

Coming to pattern analysis, the Markets have breached its 50 and 100-DMA while on its way down. However, the decline is more due to an external feature, i.e. the issue of retrospective tax demand on portfolio investors, and less on technical ground. This reason is evident because, the Markets have declined in the manner as if these key supports never existed. Such news flows tend to disregard the technical factors as well as the technical levels.

Overall, Markets have now shed 385-odd points from the pullback of 493-odd points from the Close of March 27th. This translates into correction of 78% of the pullback. Usually, such levels see some support coming in and owing to huge short positions that have been seen piling up in the futures segment, even a small technical pullback cannot be ruled out. However, it is advised to completely refrain from creating aggressive positions and maintain cautious outlook in the Markets.

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

1 comment:

  1. You are showing daily market trend its very helpful to all traders.
    CapitalStars

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