MARKET REPORT July
07, 2015
Markets traded precisely as analyzed as it did gave a gap
down opening, took support at its 200-DMA and then recovered as the day
progressed and ended the day with modest gains. The Markets saw a gap down
opening following which it made its day’s low at 8386.15 in the morning
session. Though this level was formed in the initial trade, the Markets traded
in a narrow range in the first half of the session. It was in the second half
that the Markets saw recovery coming in. The Markets saw itself changing trajectory
in the second half and managed to recover all of its losses. It also went on to
trade in the positive territory in the late afternoon trade while forming day’s
high of 8533.16. Markets rose nearly 150-odd points from the low point of the
day. These levels were sustained and the Markets finally settled the day at
8522.15, posting a modest gain of 37.25 points or 0.44% while forming a higher
top but lower bottom on the Daily Bar Charts.
MARKET TREND FOR TUESDAY, JULY 07, 2015
Expect the Markets to open on a flat and quiet note with a
positive bias and look for cues in the initial trade. Though the undercurrent
remains intact, the Markets may consolidate in the initial trade as it has
risen over 150-odd points in the yesterday’s trade. In event of any temporary
weakness or any consolidation, the levels of 100-DMA should act as support.
This is the resistance level that the Markets moved past yesterday.
For today, the levels of 8550 and 8595 are immediate resistance
for the Markets. The supports come in at 8460 and 8410 levels.
The RSI—Relative Strength Index on the Daily Chart is
65.0601 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
firmly bullish while trading above its signal line.
On the derivative front, NIFTY July futures have added over
3.87 lakh shares or 2.23% in the Net Open Interest. This is certainly bullish
indicators which once again suggest that there has been no short covering in
yesterday’s pullback from lower levels. Fresh buying has been seen. The NIFTY
PCR stands at 1.13 as against 1.11.
Coming to pattern analysis, the Markets have not clearly
confirmed its bottom at 7950-8000 levels. After taking support at these levels,
the Markets pulled back, declined to form a higher bottom at 8195 and have once
a gain pulled back. This has led to confirmation of this bottom, at least as of
now. Given the fact that the Markets have risen over 150-odd points from the
lows of yesterday, we may see it consolidating briefly but the undercurrent
certainly remains intact.
Overall, all technical indicators and supportive figures
point towards continuation of uptrend in the Markets. Even if the Markets consolidates
a bit, gathers strength, and remains above its 100-DMA, it should be perfectly
fine from any angle. One can continue to make purchases in the select stocks
while maintaining vigil on profits 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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