MARKET TREND FOR TUESDAY, MAY 02, 2017
Indian Equity Markets on Friday remained subdued as the
benchmark NIFTY50 ended the day with modest losses of 38.10 points or 0.41%.
Though it did come off from the lows of the day but still ended with mild
negativity. On Tuesday, the Markets shall open after a long weekend and is
expected to see some modestly negative opening. Activities are likely to remain
subdued and Markets may take some breather despite the underlying current
remaining buoyant. There are plenty of signs of a impending consolidation and
virtually no signs of any kind of reversal of the uptrend. This may push
Markets into some consolidation and sideways range bound movement for some
time.
The levels of 9350 and 9390 will continue to act as
immediate resistance. Supports will come in at 9275 and 9260 zones.
The Relative Strength Index – RSI on the Daily Chart is
63.2537 and remains neutral showing no divergences. The Daily MACD is bullish while trading below its signal
line. No significant formations are observed on Candles.
The pattern analysis depicts an interesting picture. As
mentioned above, post breaking out from the corrective channel, the NIFTY broke
out on the upside and after marking its highs, it taking some breather. The
neutral to mildly consolidating lead indicators throw up plenty of signs that
point towards Markets taking some breather and consolidating. On the brighter
side, it shows no signs of any impending reversal of the current up trend.
All and all, with the underlying uptrend remaining
absolutely intact, there are enough signs that show that Markets are likely to
consolidate and take some breather. It is expected that NIFTY will consolidate
in a defined trading range and while it does so, all sharp upsides will remain
equally vulnerable to profit taking bouts from higher levels. It is advised
that while keeping overall purchases limited and highly selective, profits
should be protected at higher levels.
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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