Sunday, April 23, 2017

MARKET TREND FOR THURSDAY, APRIL 20, 2017

MARKET TREND FOR THURSDAY, APRIL 20, 2017
We had mentioned in our previous note that though the corrective inclinations will persist in the Markets, we will see NIFTY attempting to find base at current levels. In line with these projections, the benchmark NIFTY50 spent the entire session in a much capped range and ended the day on a flat note losing nominal 1.65 points or 0.02%. On Thursday, we expect a quiet start to the Markets and the session is expected to remain range bound with upward bias and limited downsides. Minor corrective activities may persist and some amount of volatility cannot be ruled out.

The levels of 9145 and 9190 will act as resistance levels for the day whereas the supports will come in at 9070 and 9045 levels.

The Relative Strength Index – RSI on the Daily Chart is 49.9565 and it is bearish as it marked its lowest value in last 14-days. However, it does not show any divergence s against the price. The Daily MACD is bearish while trading below it signals line. No significant formations are observed on candle. A candle resembling a hammer is observed but it is not a classic hammer as the lower shadow is not long enough.

The NIFTY APR shed 71,250 shares in Open Interest. This figure is too small to indicate and change in underlying sentiment.

The pattern analysis shows that post marking highs at 9273, the NIFTY has formed a small corrective downward sloping channel. This is a case of classical consolidation as this formation has occurred on much lower than average volumes.

All and all, corrective inclinations may persist in the Markets and we may also see trades on lower-than-average volumes. With some more consolidation on cards, we will see very specific pockets of sectors performing and very selective approach of the participants is likely. With no change in the primary direction of the Markets, we recommend selective approach to the Markets while keeping overall exposure 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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