Thursday, July 2, 2015

Daily Market Trend Guide -- Thursday, July 02, 2015

MARKET REPORT                                                                                      July 02, 2015
Much on the expected lines, the Markets had a steady session yesterday as it surged some more to end the day with decent gains. The Markets had a better than expected opening and saw it opening modestly in the positive. Post this modestly positive opening, the Markets remained in a upward rising trajectory throughout the session. It kept making fresh gradual highs during the day. It was in the last hour and half of trade that the Markets collected some more strength to form the day’s high of 8481.60. It did came off a bit in the final moments of trade but finally ended the day at8453.05, posting a decent gain of 84.55 points or 1.01% while continuing to form a higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR THURSDAY, JULY 02, 2015
The Markets continues to pose itself at an interesting juncture. The Markets are likely to open on a flat and quiet note and would look for cues again and it would do so with a upward bias. The Markets moved past the 200-DMA yesterday at Close and have halted at its 100-DMA which is 8474.05. This level will act as resistance at Close levels. However, the Markets have nearly confirmed the bottom that it had formed at 7950-8000 mark if it moves past this resistance as well.
For today, the levels of 8474 and 8565 are immediate resistance for the Markets. Support would come in at 8374 and 8340 levels.
The RSI—Relative Strength Index on the Daily Chart is61.7653 and it has reached its highest value in last 14-days which is bullish. It does not show any bullish or bearish divergence. The Daily MACD remains bullish as it continues to trade above its signal line.
On the derivative front, NIFTY July has continued to add further over 6.96 lakh shares or 4.26% in Open Interest. This is a very positive indication as it signifies that the Markets have continued to see yesterday’s surge on account of fresh buying.
Coming to pattern analysis again, the Markets have managed to move past the levels of 200-DMA at Close levels and this level is likely to act as support in event of any temporary consolidation. If we take a look over previous sessions, the Markets have formed a bottom near its double bottom support in the range of 7950-8000 levels. It pulled back, declined a bit, formed a higher bottom at 8195 and has moved up again. This structure has more or less confirmed the potential bottom that the Markets formed last month. The key would be to see that the Markets maintains itself above 200-DMA in event of any temporary consolidation.
All and all, all indicators look perfectly in place along with global news flows. It is likely that the Markets consolidate a bit after the serious pullbacks that it saw in last three sessions. However, all underlying indicators point towards continuing uptrend in the Markets. One may continue to make fresh selective purchases while protecting profits at higher levels. Consolidation, if any, would be in form of ranged sideways movement with some volatility but any major downside looks limited at this juncture.
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

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.