MARKET TREND FOR WEDNESDAY, MARCH 22, 2017
The Indian Equities saw classical consolidation on projected
lines as the NIFTY ended the day on a flat note losing 5.35 points or 0.06%.
Today on Wednesday, we expect the Markets to trade on similar lines. The
opening is expected to be modestly negative and there are chances that we see
some corrective activities in the first half. However, indicators continue to
suggest that such corrective activities may remain in form of intraday
oscillations and NIFTY continues to consolidate with limited downsides at
Close.
The levels of 9155 and 9200 will act as immediate resistance
levels while the supports will come in at 9085 and 9015 levels.
The Relative Strength Index – RSI on the Daily Chart stands
at 71.5067 and it remains neutral showing no bullish or bearish divergence
against the price. The Daily MACD continues to remain bullish while trading
above its signal line. A formation similar to Spinning Top has occurred
on Candles. This reflects caution and indecisiveness on part of the Market
participants.
The NIFTY March futures saw further addition of 2.91 lakh
shares or 1.14% in Open Interest. This addition of OI has occurred while the
NIFTY pulled back from the lower levels of the day indication possible creation
of fresh long positions in the Markets.
The pattern analysis of NIFTY clearly reflects some
exhaustion on the Daily Charts. Post the breakout from the 9000-mark, the NIFTY
has retraced a small portion of it and presently it continues to fiercely
consolidate at Close levels. It is very much likely that it continues to
consolidate in this manner and the indicators suggest very limited downsides
and suggest the present trend to be intact.
All and all, in all possibilities, we will see a mildly
negative opening but even if this happens, we will continue to see resilience at
Close levels. In all probability, the corrective activities will persist but
the oscillations will remain defined in a range and we may not see any major
selloff as yet. In fact, there are strong indications that such dips will get
bought into on very selective basis. Positive caution is advised for today.
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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