MARKET REPORT May
15, 2015
Markets typically consolidated in a volatile session but
ended the day on a flat note with minor losses. The Markets opened on a
negative note and remained in negative territory for the entire session. Post
negative opening, the Markets very rapidly lost ground in the early trade to
form the day’s low of 8137.30. However, it recovered these losses by late early
afternoon session to trade flat. Some weakness crept in by the second half of
the session but the Markets once again attempted to recover in the late
afternoon trade. It did managed to recover most of its losses and finally
settled the day at 8224.20, posting a minor loss of 11.25 points or 0.14% while
forming a lower top but higher bottom on the Daily Bar Charts.
MARKET TREND FOR FRIDAY, MAY 15, 2015
Today as well, we continue to revolve the day’s analysis
more or less on the similar lines. The Markets are expected to give a flat to
modestly positive start but at the same time, it still continues to trade below
its 200-DMA and this level is likely to pose resistance on its way up. However,
the Markets are likely to attempt to continue with its recovery and trade with
upward bias but still some intermittent bouts on the downside cannot be ruled
out so long as it trades below its 200-DMA.
For today, the levels of 8295 and 8350 will act as immediate
resistance for the Markets. The supports come in at 8140 and 8075 levels.
The RSI—Relative Strength Index on the Daily Chart is
44.2566 and it remains neutral showing no bullish or bearish divergence or any
failure swing. The Daily MACD has reported a positive crossover and it now
bullish trading above its signal line.
On the derivative front, the NIFTY May futures have added
over 2.15 lakh shares or 1.55% in Open Interest. This shows some little amount
of buying has emerged from lower levels. The NIFTY PCR stands at 0.95 as
against 0.98.
Coming to pattern analysis, the Markets have attempted to
find its bottom after posting lows on May 7th and is now attempting a
pullback. However, while doing so, it still rules below its 200-DMA and
therefore it is necessary for the Markets to move past this level. However,
until this happens, as mentioned in our yesterday’s edition of Daily Market
Trend Guide, the Markets will continue to witness volatile movements. Again,
with the overall structure of the Chart supported by F&O data and somewhat
improved external environment, there as strong chances that the Markets
continue with its reversal in the coming sessions.
All and all, while continuing to remain constant on our
analysis of previous couple of days, we continue to advise to refrain from aggressive
positions. While strongly guarding any existing profits, small amount of fresh
and selective purchases may be made. Cautious optimism 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
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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