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The Markets traded yesterday almost in line with the analysis carried out as it opened positive, made a intraday top and transformed itself into negative falling trajectory to end the day with nominal losseswhile continuing to consolidate. In this process, the Markets have continued to form a lower top and lower bottom on the Daily High Low charts.
Technically speaking, since the Markets have ended the day near the low point of the day, it is expected to open on a moderately lower note and trade negative in the early trade while looking for directions and heavily depending upon the intraday trajectory that it shall form in the early trade.
For today, thus, expect the Markets to open on a moderately low to flat note and trade in a range in the initial trade. For today, the levels of 5105 an 5130 are expected to act as resistance while the levels of 5050 and 5026 are expected to act as supports.
The RSI—Relative Strength Index on the Daily Chart is 55.0874 and it is neutral as it shows no negative divergence or failure swings. The Daily MACD continues to remain bullish as it trade above its signal line.
Having said this, it is important to note that, as often pointed out in our previous editions of Daily Market Trend Guide, the Markets still continues to remain in range and meaningful and sustainable rally shall occur only after the Markets moves past the levels of 5170. Further, in the yesterday’s session, the Markets (Nifty) has shed some 5% in open interestwhich shows some unwinding has been done from higher levels. However, as against this, the FIIs have remained net buyers in Cash Segment. All and all, from all that is mentioned above, it is clear that Markets will see some easing or at leastcontinue to see some consolidation from these levels and the upside is expected to remain capped. It is thus advised to remain highly stock specific while initiating longs and keep protecting profits vigilantly at higher levels. Volatility shall remain. Overall, cautious outlook is advised for today.
The Markets had a strong session yesterday as it ended the day with robust gains though remaining quite volatile during the day post reacting to IIP numbers. The Markets continued to give a sharply higher top and higher bottom on the Daily High Low Charts.
The Markets are expected to continue from where it left yesterday and continue with its up move at least in the initial trade but they are equally likely to consolidate at these levels.
For today, expect the Markets to open on a moderately positive note and will look for directions post opening. There is possibility that after opening on a moderately positive note, it may form a sideward or falling trajectory and may consolidate.
For today, the levels of 5120 and 5145 are likely to act as resistance and the levels of 5034 and 5005 shall act as supports.
The RSI—Relative Strength Index on the Daily Chart is 56.3520 and it has reached its highest value in last 14-days. However, it does not show any positive or negative divergence.
The Daily MACD continues to remain bullish as it trades above its signal line.
Having said this, it is still very important to note that the Markets continue to remain in a original broad trading range of 5170 on the upper side and 4730 on the lower side and though it may have made a remarkable pullback on expected lines, it is still to make any pattern breakout on the upside, which shall occur only after the Markets moves past the levels of 5170 comprehensively with good volumes.
All and all, the Markets have given a pullback of 368-odd point from its day’s low couple of sessions back and the possibility of consolidation around these levels cannot be ruled out. Also, along with fresh buying, lots of short covering was also seen, adding to the possibility of consolidation today. It is thus advised to remain highly stock specific in taking longs and vigilantly protect profits at higher levels. Cautious outlook is advised for today.
The Markets yesterday opened flat but spent the session in a rising trajectory as it ended the day near the high point of the day with decent gains and in the process have formed sharplyhigher top andhigherbottom on the Daily High Low Charts.
Today’s analysis would be more or less same like yesterday but with important resistance levels coming in between.
For today, expect the Markets to open on a decently positive note and look for directions and it will be critically important that the Markets remaining in positive intraday trajectory.
For today, the Markets are likely to give a positive opening and trade in the positive at least in the initial trade. Today, the levels of 5034 in form of a minor double top and the level of 5053 which is 50-DMA of the Markets are likely to pose resistance today. In case of gap up opening, it would be important to see what Markets takes shape near these levels.
All lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Chart is 50.4686 and is neutral as it shows no negative divergence or failure swing. The Daily MACD has reported a positive crossover and now trades above its signal line, which is bullish.
Having said this, in rise of around 250-odd points in NIFTY in last two session, the Markets have added, though nominal, in total open interest. The important thing is that it has not shed anything in Open Interest and thus, it can be fairly be concluded that even though there may be short covering, the same has been replaced in equal quantity of longs.
All and all, the Markets are likely to open on a decently positive note and trade positive, at least in the initial trade. However, we may see some consolidation / profit taking near the resistance levels mentioned and some volatility may be seen near these levels. It is advised to refrain from shorts and longs may be taken selectively, while equally protecting profits at higher levels. Overall, positive outlook is advised for today.
The Markets had an expected rally on Friday on back of favorable technicals and supported by positive global markets and ended the day with strong gains, and in the process formed a sharply higher top and higher bottom on the Daily High Low charts.
As mentioned in our previous editions of Daily Market Trend Guide, the Markets have been trading in a very broad rectangle, i.e. trading range of 4720-5170 and there had been no structural breach on the Charts and as a result, the rally was expected.
However, post this rally, the Markets still continue to remain in a trading range. For today, expect the Markets to open on a moderately positive note and look for directions. The Markets are likely to open on a positive note and continue with its up move at least in the initial session. For today, the levels of4930 and 4970 shall act as resistance and the levels of 4850 and 4810 are likely to act as supports.
All lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Chart is 45.5940 and is neutral as it shows no negative divergence or failure swing. The Daily MACD continues to trade above its signal line and is therefore bullish.
On the Weekly Chart, RSI is neutral at 37.4505 as it does not show any negative divergence or failure swing. The Weekly MACD still trades below its signal line. On the Candles Weekly Chart, A long lower shadow occurred which is usually potentially bullish under similar chart conditions. Further, the Markets have not shed but added nominal Open Interest in futures. It can be fairly observed that from Friday’s rally, there had been no net short covering which usually results in shedding of OI, but fresh longs have been created.
All and all, theMarkets are likely to open positive, and trade positive at least in the initial trade. While protecting profits on initial positions, very selective fresh purchases may be made, while avoiding shorts. Volatility may remain. Overall, positive outlook is advised for today.