Daily Market Trend Guide -- Monday, July 13, 2015

MARKET REPORT                                                                                             July 10, 2015

Friday’s session saw the Markets continue to consolidate in a choppy trade as it ended the day with modest gains after spending nearly entire session on a flat note. The Markets saw a positive opening but at the same time continued to resist near its 200-DMA levels. Post positive opening, the Markets pared its morning gains to trade flat and even dip slightly in the negative. The remaining part of the session was spent in a very narrow range with the Markets completely lacking directional bias. It was the last half an hour of the trade which saw the Markets making an up move. It also went on to form its day’s high of 8377.10. It hovered around a bit near those levels and finally settled the day at 8360.55, posting a net gain of 32 points or 0.38% but still formed a lower top and lower bottom on the Daily Bar Charts.

MARKET TREND FOR FRIDAY, Monday, 13 July 2015

The Markets are expected to start the week on a flat note. The consolidation, which markets are in in for last few trading sessions, would continue today also. Technically speaking, the Nifty continues to remain in its filter of 200 DMA- Daily Moving Average. Consolidation of Nifty is likely to continue within the filter range of its 200 DMA , that is , 8323 on the lower side and 8385 on higher side.

Likewise, for today, intraday range of the market is expected between these levels of 8323 – 8385 as these levels are expected to act as support and resistance respectively.
 

On Candles chart, A long lower shadow occurred. This is typically a bullish signal particularly when it occurs near a low price level, at a support level, which is the case with Nifty, and technically this limits downside in the market. Currently important indicator MACD is not in Overbought/Oversold range.is bullish since it is trading above its signal line. Another important indicator RSI also does not show any bearish signs.
 

Pattern Analysis indicates that the markets are not above to break above its 200 DMA and this is acting as its resistance levels, both intraday day and at close. However, even though Nfity is trading below its 200 DMA it has not broken down below its filter range. Hence markets are experiencing consolidation. This, along with the other technical reading of indicators, chances of downward movement in the market are less and ranged, and the overall technical picture of the market has a bullish bias.
 

Till Nifty trades and closes above its 200 DMA, it will be range bound. Intraday and short term traders are advised to protect profits at every high in the market . Long term investors can remain invested. Cautious outlook is advised for today.
 

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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