MARKET TREND FOR MONDAY, APRIL 24, 2017
The Friday’s session saw the opening buoyancy fizzling out
as the benchmark NIFTY50 came off from its opening highs and ended yet another
day with a modest lows after pulling back modestly from the lows of the day. On
Monday, we expect the NIFTY to continue to remain in the corrective channel and
spend some more time in this channel amidst global uncertainties but the lows
of 9050-9075 that we witnessed shall lend strong support to the Markets. A
modestly negative opening to the Markets is expected but NIFTY but overall the
session is expected to remain stable.
The levels of 9150 and 9195 will continue to pose resistance
at higher levels. The levels of 9075 and 9040 are expected to lend supports.
The Relative Strength Index—RSI on the Daily Chart is
51.4336 and remains neutral. The Daily MACD is bearish trading below its signal
line but it has started to flatten its trajectory. No significant formations
are observed on Candles.
The NIFTY April futures went on to shed over 8.84 lakh
shares or 4.53% in Open Interest. The May futures added over 5.82 lakh shares
or 19.53% in Open Interest.
The pattern analysis shows the NIFTY trading in a minor
falling channel post marking its recent highs. This is a typical corrective
channel formed within a primary uptrend. The other evidence of the
consolidation taking place is lower volumes that are observed while this
corrective channel was formed.
As mentioned often in our previous notes, though minor
corrective activities will continue to weigh on our Markets and so will global
uncertainties, we reiterate that the primary uptrend remains absolutely intact.
Even macro factors like US Bond Yields touching lows from its highs will spell
out favorably inflow picture for the emerging markets. While continuing to keep
overall exposure modest, positively cautious approach is advised for the day.
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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