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MARKET TREND FOR TODAY
After yesterday's sharp up move in the last hour of the trade, we strongly expect some profit taking to set in and the Markets to open on a negative note and look for directions. The key would be to see if it opens above or below 5400 and its subsequent behavior vis-a-vis those levels after the opening.
For today, the levels of 5425 and 5440 are resistance levels and the levels of 5375 and 5335 are immediate support on the Charts.
The RSI--Relative Strength Index on the Daily Chart is 68.41 and the Daily MACD continues to trade above its signal line.
It is extremely important to observe at this point that in the yesterday's rise, both Stock and NIFTY futures have shed net open interest. This means that there was bulk of short covering and less of fresh longs in the Markets. The key would be to see if they get replaced with fresh longs, or the profit taking sets in.
All and all, as per the techniacls, which says the Markets have NOT moved past its filters and as per F&O Data, there are chances that we may see consolidation or more possibly profit taking with lower opening expected. It is strongly advised that there is no conviction, as of today, and retail investors should not get carried away with such rise until directions get clear. All and all, refraining from aggressive positions with cautious outlook is advised for today.
Milan Vaishnav,After yesterday's sharp up move in the last hour of the trade, we strongly expect some profit taking to set in and the Markets to open on a negative note and look for directions. The key would be to see if it opens above or below 5400 and its subsequent behavior vis-a-vis those levels after the opening.
For today, the levels of 5425 and 5440 are resistance levels and the levels of 5375 and 5335 are immediate support on the Charts.
The RSI--Relative Strength Index on the Daily Chart is 68.41 and the Daily MACD continues to trade above its signal line.
It is extremely important to observe at this point that in the yesterday's rise, both Stock and NIFTY futures have shed net open interest. This means that there was bulk of short covering and less of fresh longs in the Markets. The key would be to see if they get replaced with fresh longs, or the profit taking sets in.
All and all, as per the techniacls, which says the Markets have NOT moved past its filters and as per F&O Data, there are chances that we may see consolidation or more possibly profit taking with lower opening expected. It is strongly advised that there is no conviction, as of today, and retail investors should not get carried away with such rise until directions get clear. All and all, refraining from aggressive positions with cautious outlook is advised for today.
Consulting Technical Analyst,
+91-98250-16331
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