Tuesday, March 21, 2017

MARKET TREND FOR TUESDAY, MARCH 21, 2017

MARKET TREND FOR TUESDAY, MARCH 21, 2017
The Indian Equities traded much on expected lines as the Markets took a breather and showed some retracement from its highs. It ended with a modest loss of 33.20 points or 0.36% in a range bound session after coming off from the opening intraday highs. We expect the Markets on Tuesday to open on a flat note and remain range bound with an upward bias. We expect range bound consolidation with bullish intent. We also expect some volatility to creep in but overall downsides will continue to remain limited.

Tuesday’s session will see 9150 and 9190 acting as the immediate resistance levels while the supports will come in at 9085 and 9045 levels.

The Relative Strength Index – RSI on the Daily Chart is 72.3006 and it remains neutral showing no bullish or bearish divergences against the price or any failure swings. The Daily MACD stays bullish while trading above its signal line. No significant formations are observed on Candles.

On the derivative front, the NIFTY March futures have added over 6.81 lakh shares or 2.74% in Open Interest.

The pattern analysis shows some likely throwback after a spectacular and strong breakout. The NIFTY has successfully achieved and confirmed a breakout from its major Double Top pattern resistance. Post rise of over 200-odd points from the point of breakout, it is taking some breather and witnessing some healthy consolidation. This would be positive for the Markets and will lend further strength that it will require to move higher in coming days.

All and all, it is also important to note that some fresh shorts are also seen being built in to the system. The strong technical indicators and the creation of shorts will continue to keep the downsides limited. We reiterate to stick to the policy of selective stock picking and continue to maintain positive outlook on the Markets. The overall exposures should be kept highly selective while avoiding creation of any shorts in the Markets as the undercurrent continues to remain strong with an upward bias.

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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