MARKET TREND FOR TODAY
Today, expect the Markets to open on a moderately positive note and look for directions. After resisting to the levels of 5630 which are now a major resistance in form of a Double Top, the Markets are likely to continue to resist to these levels. The intraday trajectory, therefore, shall be important for today to determine the trend. The Markets are expected to take some breather today after 10 days of rise and are expected to either consolidate or mildly correct.
For today, the levels of 5630 and 5650 shall continue to act as major resistance.
The lead indicators point towards some weariness in the Markets. The RSI--Relative Strength Index on the Daily Chart is 75.9195 and though it has reached its highest value in last 14-days which is bullish, it also continues to remain heavily in OVERBOUGHT zone. The Daily MACD continue to trade above its signal line.
Having said this, it is important to note that while continuing to react positively to the unleashed reforms, the CRR cut by the RBI has remained more or less a non event after a mild intraday reaction. This points towards weariness creeping in the Markets. Further it should also be note that though NIFTY and some Stock futures have continued to add open interest, such rise, however supported by expected change in fundamentals, can get unhealthy if it rises in this manner with OVERBOUGHT technicals. It would be healthy for the Markets to either see a mild correction or at least consolidate so that it can capitalize on this smart rise of last couple of days and also make it sustainable and healthy.
Therefore, some range bound movement in form of consolidation cannot be ruled out. Some intermittent bouts of profit taking may also be seen. It is advised that instead of buying aggressively now with rising markets, profits should be protected at higher levels while selective buying can still be done. Overall, neutral to positive outlook with some caution is advised for today.
Today, expect the Markets to open on a moderately positive note and look for directions. After resisting to the levels of 5630 which are now a major resistance in form of a Double Top, the Markets are likely to continue to resist to these levels. The intraday trajectory, therefore, shall be important for today to determine the trend. The Markets are expected to take some breather today after 10 days of rise and are expected to either consolidate or mildly correct.
For today, the levels of 5630 and 5650 shall continue to act as major resistance.
The lead indicators point towards some weariness in the Markets. The RSI--Relative Strength Index on the Daily Chart is 75.9195 and though it has reached its highest value in last 14-days which is bullish, it also continues to remain heavily in OVERBOUGHT zone. The Daily MACD continue to trade above its signal line.
Having said this, it is important to note that while continuing to react positively to the unleashed reforms, the CRR cut by the RBI has remained more or less a non event after a mild intraday reaction. This points towards weariness creeping in the Markets. Further it should also be note that though NIFTY and some Stock futures have continued to add open interest, such rise, however supported by expected change in fundamentals, can get unhealthy if it rises in this manner with OVERBOUGHT technicals. It would be healthy for the Markets to either see a mild correction or at least consolidate so that it can capitalize on this smart rise of last couple of days and also make it sustainable and healthy.
Therefore, some range bound movement in form of consolidation cannot be ruled out. Some intermittent bouts of profit taking may also be seen. It is advised that instead of buying aggressively now with rising markets, profits should be protected at higher levels while selective buying can still be done. Overall, neutral to positive outlook with some caution is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
