Daily Market Trend Guide -- Tuesday, November 24, 2015

MARKET REPORT                                                                                   November 24, 2015

Markets continued to consolidate on expected lines while it ended the day on flat note with nominal losses. The Markets saw a modestly positive opening as it has been doing since previous week, spent the morning trade in a sideways trajectory trading in a capped range. It formed its intraday high of 7877.50 in the late morning trade. However, as apprehended, the Markets did not sustain its modest gains that it had in the morning. The afternoon trade saw the Markets paring all of its gains and trade flat. It slid further into the negative territory to form the day’s low of 7825.50. This downside too remained capped and limited as some recovery was seen in the last hour of the trade. The Markets finally ended the day at 7849.25, posting a nominal loss of 7.30 points or 0.09% while forming a lower top but similar bottom on the Daily Bar Charts.

MARKET TREND FOR TUESDAY, NOVEMBER 24, 2015

Markets are expected to open on a quiet to modestly negative note and would trade in a capped range in the initial trade. Today we enter into penultimate day of the expiry of the current series because tomorrow is a trading holiday on account of Gurunanak Jayanti. The F&O data clearly suggest that the Markets are more or less expected to trade in a range and look for directions and no sharp movement either side is expected. However, the consolidating Markets keeps the analysis more or less once again on similar lines.

Today, the levels of 7900 and 7935 will act as immediate resistance levels for the Markets. The supports come in at 7820 and 7760 levels.

The RSI—Relative Strength Index on the Daily Chart is 42.3418 and it remains neutral as it shows no bullish or bearish divergence or any failure swings. The Daily MACD continues to remain bearish as it trades below its signal line.

On the derivative front, rollovers continued as the NIFTY November futures shed over 20.15 lakhs or 12.76% in Open Interest whereas the December futures added over 45.63 lakh shares or 76.22% in Open Interest resulting into net addition in the Open Interest.

Coming to pattern analysis, the Markets have remained in a narrow 125-odd points range since last couple of sessions and have headed nowhere. The markets consolidated in this narrow range. As mentioned often in our previous editions, the Markets have attempted to form a bottom but have not yet confirmed it. It will have to maintain levels above 7750 and any breach below this will have the Markets test its important pattern support of 7680 levels. However, any major downside is much limited by possibility.

Overall, though the Markets do not seem to show any possibility of major downsides, the upsides too would remain limited and the Markets continue to remain vulnerable to sell-offs from higher levels resulting into some volatility being ingrained in the Markets. The volumes too are likely to remain lower. Therefore, while keeping the overall exposure limited and very stock specific, continuation of 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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