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Though remaining capped and range bound for most part of the session, the Markets managed to end yet another day with modest gain while continuing it s pullback and in the process have formed a slightly higher top and higher b bottom on the Daily High Low Charts.
Today, the Markets are again likely to open on a flat note and continue to consolidate like it did yesterday and look for directions. Since the Markets are likely to continue to consolidate, they shall continue to depend upon the intraday trajectory that the Markets will form.
With flat to mildly negative opening expected, the levels of 5170 and 5230 shall continue to act as resistance and the levels of 5115 and 5090 shall act as support. The behavior of the Markets vis-à-vis the levels of 5170 shall be critically important. This is because, as mentioned in our yesterday’s edition of Daily Market TrendGuide, the Markets have resisted precisely at those levels. For a sustainable pullback to continue, it would be critically important for the Markets to move past the levels of 5170 and trade above that.
The RSI—Relative Strength Index on the Daily Chart is 52.8114 and it does not show any negative divergence. It has reached its highest value in last 14-days and this is Bullish. On the Candles, though Spinning Top has occurred, the overall pattern remains Bullish.
The Daily MACD too continues to trade above its signal line.
The NIFTY Futures OI has shown minor shedding and the discount of 10-points has been replaced with premium of 2-points. This is due to short covering that we witnessed yesterday.
All and all, until the Markets comfortably moves past the levels of 5170, it is likely to continue to consolidate in a given range and remain slightly volatile. Though selective purchases may be made, the profits should be vigilantly protected at higher levels. While avoiding shorts, cautious optimism is advised for today.
Though on low volumes, the Markets continued with its up move yesterday and remained in the rising trajectory for the entire session. It did come off its lows but still managed to end the day with decent gains and in the process forming a higher top and higher bottom on the Daily High Low Charts.
Today, we are likely to witness a session wherein the Markets are likely to consolidate. The Markets are likely to open on a flat note and are likely to remain in a very capped range and consolidate after decent pullback from its recent lows.
The Markets have resisted yesterday near the levels of 5170 mentioned in our yesterday’s edition of Daily Market Trend Guide. This is the Double Bottom support that the Markets broke while coming down and this likely to remain a temporary resistance until the Markets moves past this levels. The behavior of the Markets vis-à-vis this level would be critically important for the Markets to continue with its sustainable up move.
The RSI—Relative Strength Index on the Daily Chart is 51.1515. It does not show any negative divergence but the RSI has reached its highest value in last 14-days, which is Bullish. The Daily MACD continues to trade above its signal line and is bullish. On the Candles, A Rising Window has occurred. This usually implies continuation of Bullish trend.
The Markets have seen a pullback of almost 434 points from its days low in last couple of sessions. The NIFTY September future Open Interest remain virtually unchanged with the discount increasing to 7-points from 3-points. This implies minor addition of shorts along with long positions on very small scale.
All and all, with the levels of 5170 acting a immediate resistance, the Markets are likely to consolidate in a broad range of 4960-5170 levels. Intraday trajectory would continue to remain critically important. It is strongly advised to remain highly selective while picking stocks while vigilantly protecting profits at higher levels. Overall trend remains intact.
After trading weak and lagging on back of global weakness, the Indian Markets again showed remarkable resilience as itrecovered over 120-odd points to end the day with decent gains and in the process have formed a sharply higher top and lower bottom on the Daily High Low Charts.
For today, expected the Markets to open on a modestly positive note and look for directions. Though the participation / volumes had improved yesterday, today also, the continuation and quantum of up move shall continue to depend upon the intraday trajectory and the volumes.
The Markets are expected to open modestly positive and trade positive, at least in the initial trade. For today, the levels of 5110 and 5175 shall act as resistance and the levels of 5035 and 4980 shall continue to act as supports.
All lead indicators point towards continuation of pullback. The RSI—Relative Strength Index on the Daily Chart is 47.5355 and it has reached its highest value in last 14-days which is BULLISH. It does not show any negative divergence.
The Daily MACD continues to remain bullish as it trades above its signal line.
The Open Interest across stocks and Index have shown addition which indicates that along with short covering some amount of fresh longs have also been added and this reading is supportedwith FIIs remaining net buyers in both Cash and Derivative segments.
If the pullback continues, which is likely, the Markets are likely to rise upto the levels of 5170, and this may act as immediate resistance. This was the Double Bottom support that the Markets broke while coming down.
All and all, fresh purchases may be made while exercising great amount of caution, while strictly avoiding shorts until the trend suggests. At the same time, profits may continued to be protected at higher levels as some volatility is bound to remain ingrained. Overall, cautious optimism is advised for today.
The Markets yesterday ended the day with moderate losses, but at the same timedisplayed high degree of resilience against global weakness on expected lines and in the process have formed a lower top and lower bottom on the Daily High Low Charts.
For today, the global cues continue to remain weak. This, along with lack of participation in the Markets is likely to keep the Markets in consolidation range.
For today, expect the Markets to open again on a moderately negative note and look for directions. Today, the Markets shall depend critically on the intraday trajectory that it forms along with the volumes to set the trend for today.
For today, since the Markets are expected to open on a moderately negative note, the levels of 5040 and 5075 are to act as resistance and the levels of 4785 and 4960 are expected to act as supports.
The RSI—Relative Strength Index on the Daily Chart is 44.5614 and it shows no negative divergence or failure swing and is therefore neutral. The Daily MACD is Bullish as it continues to trade above its signal line.
Yesterday’s session has remained a capped session with the Markets opening low, trading in a range and then recovering. Today also, post negative opening following the global cues, we are again expected to show some resilience and trade in a range with capped downside and high chances of recovery.
Open Interest in both NIFTY and Stock futures have shown addition in Open Interest indicating creation of fresh longs on selective basis.
All and all, with no triggers for the downside, it is advised to refrain from making fresh shorts in the Markets. Though downside may be used to make fresh purchases, that too should be done on highly selective basis as the Markets are expected to remain in a range. While continuing to protect profits at higher levels, cautious outlook is advised for today.
The Markets saw a volatile session onFriday wherein it consolidated moving in either direction and finally ended the day with modest gains in a session that witnessed very low volumes. In the process, the Markets have continued to form a higher top and higher bottom on the Daily High Low Charts.
Again today, we face a sharp contradiction in domestic technical indicators and global cues. While global cues represent weakness, all technical indicators point towards continuing pullback. However, the Markets are expected to take a middle path.
This means, expect the Markets to open on a negative note following weak global cues but later in the day, also expected it to recover as technicals are expected to take over and the Markets expected to show resilience. For today, the levels of 5060 and 5095 are expected to act as resistance and the levels of 4990 and 4960 are expected to act as supports.
All lead indicators point towards pullback to continue. The RSI — Relative Strength Index on Daily Chart is 45.7266 and it has reached its highest value in last 14-days which is BULLISH. Also, RSI has given a new 14-period high, whereas NIFTY has not as yet. This is BULLISH DIVERGENCE. The Daily MACD has reported a positive crossover as it now trades above its signal line. On the Weekly Charts too, RSI is 39.4384 and has move out from bottoming out zone, which is a good sign. Further, Weekly MACD trades below its signal line but is now in OVERSOLD range.
FIIs and DIIs have remained net buyers in both Cash as Derivative segment.
However, volumes have remained a concern. Thus, given the above reading, the most likely scenario can be that Markets may open down following global weakness but may show resilience and recover as the day progresses as overall technical view remains on the continuation of pullback. While it is advised to keep protecting profits at higher levels, it is strongly advised to avoid shorts. Cautious optimism is advised for today.