MARKET TREND FOR FRIDAY, JULY 08,
2016
The Markets traded very much on dotted
lines yesterday as it continue to consolidate and remained in a capped range
while ending the day flat with nominal gains. Today as well, we continue to
keep our analysis on similar lines. We can expect the Markets to fairly open on
a quiet to modestly negative note and look for directions. It is very much
expected of the Markets to continue to remain in a capped range and continue to
consolidate in the given range.
For today, the levels of 8375 and 8400
continue to remain as immediate resistance levels for the Markets. The supports
come in lower at 8305 and 8260 levels.
The RSI—Relative Strength Index on the
Daily Chart is 62.2029 and it remains neutral as it shows no bullish or bearish
divergence or any failures swings. The Daily MACD is currently bullish as it
trades above its signal line.
On the derivative front, the NIFTY July
future have shed over 2.60 lakh shares or 1.38% in Open Interest. Some amount
of reduction of positions was evident in the session yesterday.
Coming to pattern analysis, as mentioned
often in our previous editions, the Markets are currently consolidating after
over 400-odd points of rise from the lows of June 24th. Not only
Markets have recovered these losses, it has moved past its previous immediate
resistance levels of 8295 and has managed a breakout on the upside from there.
Currently, it continues to consolidate after such brilliant recovery and is
preparing healthy grounds for further up move. Having said this, it is also
important to note that it continues to trade in a upward rising channel drawn
from the February lows that the Markets formed.
All and all, it is very much evident from
the overall technical structure of the Charts and the F&O data that some amount
of consolidation will continue to remain for some time. During this time, the
Markets will continue to see capped movements and will also witness some
volatility remaining ingrained in the Markets. It is advised to continue to
maintain liquidity and keep purchases very selective and modest. While
utilizing any available downside to make fresh selective purchases, cautious
approach should be maintained in the Markets.
Milan
Vaishnav, CMT
Technical Analyst
Member: Market
Technicians Association, (MTA), USA
Member:
Association of Technical Market Analysts, (ATMA), INDIA
+91-98250-16331
