Daily Market Trend Guide -- Friday, July 17, 2015

MARKET REPORT                                                                                     July 17, 2015

The Markets had a steady session once again and it ended yet another day with decent gains though it did resist to its intraday resistance levels in the first half of the session. The Markets saw a better and positive opening and soon after opening it traded with decent gains in the morning session. These gains, however, remained capped and sideways as the Markets continued to resist to the levels of 8561 in the first half of the session. Though the Markets did not correct and after spending the first half of the session in sideways trajectory, it gained further strength in the second half. It went on to form the day’s high of 8616.10 by late afternoon trade. These levels were maintained and no major retracements were seen. The Markets finally ended the day at 8608.05, posting a decent gain of 84.25 points or 0.99% while forming a higher top and higher bottom on the Daily Bar Charts.

MARKET TREND FOR FRIDAY, JULY 17, 2015

The Markets are likely to see a quiet and positive opening again and look for directions at least in the initial trade. The lead indicators suggest that the Markets are likely to continue with its overall up move and continue to surge upwards in coming sessions. However, the F&O data also suggest that we may see some consolidation coming in at higher levels even if the undercurrent remains buoyant.

The levels of 8630 and 8675 would act as immediate resistance levels whereas supports come in at 8560 and 8510 levels.

The RSI—Relative Strength Index on the Daily Chart is 65.4999 and it has reached its highest value in last 14-days which is bullish. It does not show any bullish or bearish divergence as such. The Daily MACD continues to remain firmly bullish as it trades above its signal line.

On the derivative front, the NIFTY July futures have added further over 7.95 lakh shares or 3.88% in Open Interest. This figure firmly suggest good amount of long positions to have been added and it also suggest clear continuation of uptrend in the immediate short term.

Coming to pattern analysis, the Markets confirmed its bottom and have moved past all of its 3 moving averages. It had remained in a intermediary downtrend in the last quarter but now it has attempted to move back into its primary trend. So long as the Markets continues to trade above its 100-DMA, we will see strong undercurrents and the overall buoyancy would prevail. In event of any consolidation or in event if the Markets breach its 100-DMA, it would see itself again in a broad consolidation zone.

Overall, the Markets are likely to see a stable opening and is likely to trade steady at least in the initial trade. All indicators as suggest clear possibility of the Markets extending its gains. However, today and in next few sessions to come, we will have to guard against consolidation from higher levels, which would otherwise be healthy for the Markets in the long run. Overall, 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, (ATMA), INDIA
www.EquityResearch.asia
http://milan-vaishnav.blogspot.com

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