Sunday, April 23, 2017

MARKET TREND FOR THURSDAY, APRIL 06, 2017

MARKET TREND FOR THURSDAY, APRIL 06, 2017
The Indian Equities had a momentous session yesterday as it went on to mark a fresh high and end with modest gains. The Closing remained at its life time highs but we believe, in the process, the benchmark NIFTY50 has made a temporary high for itself. Though a flat to modestly positive start to the Markets cannot be ruled out but with each higher levels, NIFTY will now remain susceptible to profit taking. Though for a very temporary term, we expect some corrective activity to set in.

The levels of 9285 and 9310 will act as immediate resistance levels, the supports will come in much lower at 9190 and 9130 levels.

The Relative Strength Index – RSI on the Daily Chart stands at 71.8540 levels. It is not only overbought but continues to throw Bearish Divergence against the price. RSI has not set a fresh high while NIFTY has done so. The Daily MACD is bullish as it has reported a positive crossover. On the Candles, a Doji and a Candle with long lower shadow has occurred. This is very significant given their local on the Charts. Though a confirmation will be required, they hold a potential to halt the up move temporarily.

The NIFTY April futures have shed yet another 3.26 lakh shares or 1.46% in Open Interest.
The pattern analysis shows a similar and confirming picture. The NIFTY has successfully marked and completed a breakout but it has now become slightly overstretched. The fatigue and tiredness remain evident on the lead indicators and has shown clear signs of formation of a immediate top for the Markets.

Overall, we repeat that we see no signs of any reversal of trend but some halt in the current up move surely seems imminent. We recommend not creating any major exposures but remaining focused on very vigilant protection of profits at higher levels. Policy of sticking to very selective stocks will need to be adopted over coming days.

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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