MARKET TREND FOR FRIDAY, MARCH 24, 2017
In our previous note, we had mentioned that all we have
witnessed is a “classical throwback” and in line with this analysis, the
benchmark NIFTY50 arrested its downsides and ended the session yesterday with a
decent gain of 55.85 points or 0.62%. Today, we expect a modestly positive
start to the Markets and expect the up move to continue. Also, as of now, the
zones of 8990-9020 have re-established themselves as immediate bottom. So long
as the NIFTY trades above these levels, we will continue to see upward bias in
the Markets. Today, though the movements may remain range bound, overall, the
downsides will remain limited and upward bias will prevail.
The levels of 9125 and 9175 will act as immediate resistance
levels for the Markets while the levels of 9045 and 8990 will act as immediate
supports.
The Relative Strength Index – R SI on the Daily Chart is
65.5594 and remains neutral showing no divergences. The Daily MACD is bearish
as it trades below its signal line. On the Candles, a small “Bullish
Belthold” pattern has occurred. Thought this requires confirmation on the
following day, it implies continuation of the upward move.
The NIFTY March futures have added 0.13% in Open Interest
and this figure remains insignificant to affect the underlying sentiment.
The Pattern analysis reflects a classical throwback on the
Daily Charts. The NIFTY broke out on the upside from the 9000-mark and after
scaling fresh highs, it returned very near to the same place from where it gave
an upward breakout. Such throwbacks are normal when a breakout is sharp and with
a breakaway gap. The reversal of the move from the throwback area further
indicates likely continuation of the original up move.
All and all, we are all likely to see the Markets trading
with a positive tick. The movements overall will remain range bound and some
more consolidation cannot be ruled out. The NIFTY may see itself oscillating in
a capped range but the underlying sentiment will continue to remain buoyant and
stable. Dips, if any, should be utilized to make selective purchases as
sector-specific out performance will continue.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Member:
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
+91-98250-16331
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