MARKET TREND FOR THURSDAY, APRIL 13, 2017
We had mentioned in our yesterday’s note that some amount of
volatility is expected to creep in at higher levels. In line with the
projections, the Equity Markets had a volatile session yesterday. Though the benchmark
NIFTY50 came off from its intraday lows, it still posted minor losses of 33.55
points or 0.36%. The NIFTY has created a fresh congestion area over couple of
days. We expect a modestly negative opening but the zones of 9150-9170 will
continue to provide bottom and provide inherent strength on the Charts. With
Friday being holiday, today is the last trading day of the Week.
The levels of 9250 and 9295 will act as immediate resistance
levels while supports will come in 9150 and 9125 zones.
The Relative Strength Index –RSI on the Daily Chart is
60.8153 and it remains neutral. The Daily MACD stays bearish trading below its
signal line. No significant formations are observed on Candles.
On the derivatives front, the NIFTY APR Futures have 93,525
shares or 0.44% in Open Interest. This figure is small enough not to suggest
any change in underlying sentiment.
The pattern analysis suggests creation of fresh congestion
area over last couple of days. The NIFTY shows strong multiple bar support in
the 9150-9170 zones. This zone is created after the occurrence of the breakout
by NIFTY and its recent retracement from its immediate highs.
Overall, the current structure of the Charts show
possibilities of the NIFTY remaining in a capped range with the zones of 9150-9170
acting as support. We reiterate that with the secular trend remaining intact,
all such dips should be continued to be utilized for making fresh purchase.
Given the possibilities of volatility remaining ingrained in the markets,
exposures should be kept moderate.
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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