MARKET REPORT April
08, 2015
Markets had a terribly volatile
session more so because of technical reason while it also reacted to RBI Credit
Policy Review though it more or less remained a non event. The Markets saw
positive opening on expected lines and formed its intraday high of 8693.60 in
the early minutes of the trade. Thereafter, until the RBI came out with its
expected announcements wherein it kept its key rates unchanged, the Markets had
pared all of its morning gains to trade flat. It dipped into the negative while
the announcements were made but recovered to trade back in the green. However,
the second half of the session saw some more pressure being exerted on to the
Markets as the Markets once again pared its recovery rapidly. It went on to
form the day’s low of 8586.85 losing over 105-odd points from high point of the
day. The last hour and half once again saw volatile recovery taking place as
the Markets recouped all of its losses to trade back into the green. It finally
ended the day at 8660.30, posting a flat close with negligible gain of 0.40
points or 0.01%.
MARKET TREND FOR WEDNESDAY, APRIL 08, 2015 B
The Markets are likely to trade
more or less on similar grounds like that of yesterday. We can expect a quiet
to modestly positive opening today and the Markets are likely to approach its
50-DMA, which is 8720. This level is important to watch out for near term as
the Markets are likely to consolidate
around these levels after successfully attempting a pullback from lower levels.
The levels of 8720 and 8745 would
act as immediate resistance for the Markets. The supports exist at 8640 and
8570 levels.
The RSI—Relative Strength Index on
the Daily Chart is 52.4098 and it has reached its highest value in last 14-days
which is bullish. Also, the RSI has formed a fresh 14-period high while NIFTY
has not yet and this is Bullish Divergence. The Daily MACD is bullish while it
trades above its signal line.
On the derivative front, the NIFTY
APRIL Futures have 47,975 shares or 0.25% in Open Interest. This is negligible
as compared to OI shedding that we witnessed in the prior sessions.
Coming to pattern analysis, as
mentioned in our yesterday’s edition of Daily Market Trend Guide, the Markets
have attempted a pullback from its lows posted on March 27th.
However, post this pullback, it is likely that the Markets consolidate a bit
around these higher levels before it inches upward again. Such amount of
consolidation would be healthy for the Markets and any rise after that would
confirm the reversal.
All and all, the Markets still
trades below its 50-DMA and therefore, this level would be important level to
watch out for in the immediate term. There are fair amount of chances that the
Markets see a healthy consolidation at higher levels. This can be in a bit wide
trading range but this would keep the overall pullback healthy and confirm the
attempted reversal for the Markets. Vigilant protection of positions is advised
at higher levels.
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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