Daily Market Trend Guide -- Tuesday, July 14, 2015

Daily Market Trend Guide -- Tuesday, 14  July 2015

MARKET REPORT                                                                                 July 13, 2015

Technically bullish undertone gets ‘Greeced’, and bulls have a smooth run ! It was mentioned in yesterday’s Daily Market Trend Guide that the markets are in consolidation and chances of downward movement in the market are less and ranged, and the overall technical picture of the market has a bullish bias. Likewise, till mid day, the markets , after a flat opening,  traded very flat  till midday. Thereafter,  markets reacted positively to the news of Greece  bailout and staged a sharp upward movement.  The sentiment got a boost to such an extent that a dampening news of poor IIP  data got  ignored.  The strength in the market, prevailed till the close of the market. 

The NSE Nifty touched a low of 8,355 in late morning deals, before surging to a high of 8,472. The Nifty eventually settled with a strong gain of 99 points at 8,460.

MARKET TREND FOR TUESDAY 14 July 2015

Today also, the markets are expected to start the day on a flat note.  The consolidation , which the market was in for last few trading days had been broken upward.  Nifty has crossed its major technical resistance of its 200 DMA both intraday and at close. This is bullish breakout.

But Pattern Analysis  read along with Moving Averages of Daily High Low Chart of Nifty clearly indicates that even though it has given close above its 200 Day  Daily Moving Average, markets need to open above its another and next resistance of  100 Day Moving Average of Nifty, which is  8454.61 as on today. The market need to open  and sustain above this level for bull run to gain further momentum.  If the markets move past this level, the next  resistance exist at 8561.  If the markets fail to move past its 100 DMA, we  will see  one more stage of market consolidating between its 200 and 100 DMAs.

On Candles Chart, A white body occurred as because markets closed higher than they opened.

Important Indicator MACD continues to be  bullish since it is trading above its signal line. The MACD crossed above its signal line 17 period(s) ago and is not in  Overbought/Oversold range. Another important Indicator RSI also does not give any bearish indications.

Thus, from  Pattern Analysis, read along with the Moving Averages and the above given Indicators,  it can be technically concluded that the markets have given a bullish breakout  from its consolidation phase by moving past its 200  DMA, but for this  momentum to gain further, it need to   clear and sustain above its 100 DMA which is 8454.61 as of today. Otherwise, we will see yet  another phase of consolidation between 200 DMA and 100 DMA of Nifty. Overall technical  picture indicates bias towards bullishness.

For today, protect profits wherever available at higher levels. Further and fresh buying  may be made once market moves above its above given technical resistances.

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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