MARKET TREND FOR FRIDAY, APRIL 21, 2017
Indian equities saw a relatively stable session as the
benchmark NIFTY50 ended the day with modest gains of 32.90 points or 0.36%. In
our previous note, we had expected the NIFTY to trade with upward bias and it
did post some modest gains that occurred on back of short covering from lower
levels. On Friday, we expect a stable to mildly positive start to the Markets
and the NIFTY is expected to remain within the channel that it has formed post
its recent highs. No significant movement on either side is expected but we
expect some volatility to remain ingrained while the NIFTY aims to continue
with its up move.
The levels of 9150 and 9185 will act as resistance levels
while supports are expected to come in at 9110 and 9075.
The Relative Strength Index – RSI on the Daily Chart 53.4069
and it remains neutral showing no divergences against the price. The Daly MACD
still remains bearish trading below its signal line. No significant formation
is seen on Candles.
The NIFTY April futures saw shedding of 3.90 lakh shares or
1.96% in Open Interest. This makes it evident that the up move in NIFTY has
occurred on account of short covering from lower levels.
The pattern analysis shows NIFTY forming a small falling
channel within a uptrend as part of its corrective activity. So long, the NIFTY
has managed to stay within this channel and it is likely to remain so over
coming days.
All and all, the lead indicators on the Daily Charts show
mild inclinations of resumption of up moves in NIFTY. At most, the lower
support line of the Channel is likely to continue to act as supports. Though we
expect some volatility to remain in grained in the session, we expect the
Markets to remain stable with upward bias. We reiterate that no signs of reversal
of trend have emerged and therefore this consolidation and corrective activity
should be used for making quality purchases.
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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