MARKET TREND FOR TODAY
For today, once again expect the Markets to open on a mildly negative note and in case of weaker opening, it would be essential for the Markets not to keep making lows intraday and remain in positive territory even if it trades in a capped range. For today, the levels of 5575 and 5650 shall act as resistance and the levels of 5505 and 5480 shall act as supports.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
The Markets yesterday traded with capped losses on expected lines and did not sustain an attempt to pullback on lack of participation and ended the day with moderate losses on the seventh straight day and in the process have continued to form a lower top and lower bottom on the Daily High Low Charts.
Today is going to be no different and the overall analysis for today shall remain more or less same as that of tomorrow.
For today, once again expect the Markets to open on a mildly negative note and in case of weaker opening, it would be essential for the Markets not to keep making lows intraday and remain in positive territory even if it trades in a capped range. For today, the levels of 5575 and 5650 shall act as resistance and the levels of 5505 and 5480 shall act as supports.
The RSI—Relative Strength Index on the Daily Chart is 35.3188 which has reached its lowest value in last 14-days which is bearish. However, today also, it does not show any negative divergence. The Daily MACD continues to trade below its signal line.
There are very faint signals of the lead indicators attempting to improve. The Markets have shed over 350 points in last 7 straight sessions while continuing to add Open Interest which evidently signifies heavy creation of short positions. Also, the premium on the NIFTY Futures have narrowed from as high as 24 points to just 2 points pointing once again towards heavy shorts. The NIFTY PCR also has dropped below 1 to 0.97 which is racing towards OVERSOLD range.
All and all, it is necessary for the Markets to at least trade in range and preferably in positive rising trajectory to avoid weakness. With heavy shorts in the system, short covering is imminent and can occur any time. Using dips to make selective purchases while strictly avoiding shorts, positive optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
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