MARKET TREND FOR MONDAY, SEPTEMBER 19, 2016
Friday’s session remained extremely choppy as the Markets
saw an exceptionally strong start but at one point came off nearly 90-odd
points from the high point of the day to
end the day with modest gains. Today, we can expect a soft start to the session
and we might see some more consolidation and volatility staying in the equity
markets and the level of 8968 will continue to act as immediate sacrosanct
resistance levels in coming days.
Today, the level of 8840 and 8895 will act as immediate
resistance levels for the and the level of 8750 and 8710 will act as immediate
supports.
The RSI—Relative Strength Index on the Daily Chart is
54.8875 and it remains neutral as it shows no bullish or bearish divergence or
any failure swings. The Daily MACD stays bearish trading below its signal line.
On the Candles, a long upper shadow occurred. Such formation on Candles
has potential to halt any up move and may cause the Markets to consolidate and
resist up moves. On the Weekly Charts, the Weekly RSI is 66.4487 and it has
just crossed below from the topping formation which is bearish. Though it does not show any bullish or
bearish divergence or any failure swing. The Weekly MACD stays bullish as it
trades above its signal line. On the Weekly Candles, a falling window occurred. This, just like
the Candle on the Daily Charts, has a potential to cause the Markets to
consolidate.
On the derivative front, the NIFTY September futures have
minor increase as it added just 80,925 shares or 0.25% in Open Interest.
While having a look at pattern analysis, the Markets have
attempted a pullback after seeing 100% retracement / throwback from 8968 levels
after achieving a breakout from 8700-8730 range. These levels, so far have
acted as support while the Markets corrected while making 8968 as its immediate
top. This level will continue to act as immediate resistance in coming days. It
would be critically important to see the Markets trading above 8700-8730 range.
If the levels are breached, it can bring some more weakness in the immediate
short term.
All and all, we are likely to see the Markets remaining in
corrective mood some range bound trade with some good amount of volatility
cannot be ruled out. We will continue to see out performance from select stocks
and all dips are likely to get utilized in making selective purchases. However,
any runaway rise in the Markets is not expected.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg.
No. INH000003341)
Member:
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
Association of Technical Market Analysts, (ATMA), INDIA
http://milan-vaishnav.blogspot.com
+91-98250-16331
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