MARKET TREND FOR WEDNESDAY, APRIL 19, 2017
Indian equities had a thoroughly volatile session as after
better than expected start and outperforming the Asian peers in the morning,
the benchmark NIFTY50 came off nearly 112-odd points from the high point of the
day. We expect negativity to persist and we can have subdued opening today.
However, the NIFTY50 may attempt to find base around these levels and we may
see some improvement and stability returning back. However, no runway rise in
the NIFTY can be expected as well.
The levels of 9145 and 9180 will act as resistance levels
for today. The supports will come in at 9080 and 9045 levels.
The Relative Strength Index – RSI on the Daily Chart is
50.1295 and it is Bearish as it has reached its lowest value over 14-periods. A
Bearish Divergence is observed as the RSI has set a fresh 14-period low while
NIFTY has not. The Daily MACD is bearish as it trades below its signal line.
The NIFTY APR futures have shed over 2.94 lakh shares or
1.45% in Open Interest. The reduction in OI has indicated that we saw some long
unwinding from higher levels.
The pattern analysis depicts that a intermediate top has
been formed 9250-9275 zones and fresh up moves shall occur only after the
NIFTY50 moves past those levels. Until that happens broad range oscillations
will dominate the trading sessions.
Overall, with the Markets trading above 8970-9010 zones, the
broad uptrend remains intact. There are no signs of any reversal from the
primary trend. However, given the short term indicators read along with F&O
data, such corrective tendencies of the Markets may persist for some more time.
We reiterate our advice to shift sectors effectively and take advantage of such
corrective actions to reorganize portfolios and prepare for resumption of up
move.
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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