Saturday, March 4, 2017

MARKET TREND FOR WEDNESDAY,MARCH 01, 2017

MARKET TREND FOR WEDNESDAY,MARCH 01, 2017
Though the Markets remained yesterday in a falling trajectory, the NIFTY saw range bound movements in a range bound manner and the Markets continued to positively consolidate while it ended the day with a minor loss of 17.10 points or 0.19%. The consolidation was evident and so was the bullish undercurrent that the Markets had to put on display. Today, we expect a positive start to the Markets. Though the levels of 8930-8950 will continue to act as immediate resistance at Close levels, the bullish undertone will keep the downsides limited. The better-than-expected GDP numbers that came out will further fuel this strong underlying sentiment. Today as well, though the NIFTY remaining in consolidation cannot be ruled out the downsides will remain limited and all corrective activities are likely to get bought into.

For today, the levels of 8910 and 8950 will act as immediate resistance levels. The supports will come in at 8835 and 8810 levels.

The Relative Strength Index – RSI on the Daily Chart is 66.5061 and it remains neutral as it shows no bullish or bearish divergence as against the price or any failure swings. The Daily MACD is still bearish while it trades below its signal line. However, it has flattened its trajectory. On Candles, no significant formations were observed.

On the derivative front, the NIFTY March series have shed just over 50,250 shares or 0.24% in Open Interest. This figure is small and very insignificant to suggest any apparent change in underlying sentiment.

While having a look at pattern analysis, the NIFTY has clearly marked the 8930-8950 zones as a Double Top at Close levels. At the same time, it has shown very little retracements at Close levels and all the consolidation and minor corrective activities have remained more in the form on intraday oscillations. It is evident and clear that further upsides will occur only after the NIFTY clears this Double Top resistance above the prescribed levels.

All and all, a positive start is expected and a boost to the already buoyant sentiments cannot be ruled out with the better-than-expected GDP numbers. While this will certainly aid a positive expected start, the levels of 8930-8950 will still continue to hold as immediate important pattern resistance levels. The outperformance in Mid Caps is likely to continue and also some sector specific out-performance cannot be ruled out. Overall, with each corrective dip, stock specific purchases may be made in moderate quantities. While maintaining enough cash until the Markets breach the prescribed pattern resistance, a positive outlook is advised for today.

 Milan Vaishnav, CMT 
Technical Analyst 
(Research Analyst, SEBI Reg. No. INH000003341)

Member
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA



+91-98250-16331 

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