MARKET TREND FOR TUESDAY, APRIL 18, 2017
Markets headed nowhere yesterday as the NIFTY oscillated in
a much capped range after coming off from its early lows and ended the day on a
flat note shedding 11.50 points or 0.13%. Much on the projected lines, such
capped consolidation is expected to continue today as well. We expect a flat to
modestly positive opening and once again see the benchmark NIFTY50 attempting
to find base. There are no triggers for any runway rise in the Markets and in
the same manner; there are no signs of any reversal of the primary trend.
Plainly speaking, NIFTY currently trades in a no-trade zone with inherent trend
remaining intact.
The levels of 9175 and 9220 shall act as immediate
resistance levels. The zones of 9105 and 9065 shall act as immediate supports.
The Relative Strength Index – RSI on the Daily Chart is continues
to remain bearish as it reached the lowest value in last 14-days. A Bearish
Divergence has also occurred as the RSI has set a fresh 14-period low while
NIFTY has not yet. The Daily MACD stays bearish as it trades below its signal
line. A Spinning Top that has occurred on the Candle shows indecisiveness on
part of Market participants.
With NIFTY APR Futures shedding just over 1.11 lakh shares
or 0.55% in Open Interest, it does not
throw any meaningful indications of any change in underlying sentiments.
All and all, it is very much evident that the Markets are
undergoing a classical consolidation. Such corrective activities often occur on
low volumes and dips are generally bought into. We continue to reiterate that
there is no evidence as yet of any change in the structural trend. All
corrective downsides should be utilized to make 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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