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MARKET TREND FOR TODAY
The Markets saw correction on expected lines yesterday and ended the day with modest losses. For today, expect a moderately positive opening in the Markets and the Markets are expected to trade in a range at least in the opening trade. We may continue to see the Markets in corrective / consolidation mode and thus, the intraday trajectory that it forms post opening would be crucial to dictate the trend for today. The initial positive trade wold be due to the positive sentiment on Government not relenting for roll backs after the nation wide protests yesterday.
Having said this, the levels of 5630 has continued to remain a immediate resistance in form of Double Top resistance and the levels of 5630 and 5650 shall act as immediate resistance. As mentioned in our yesterday's edition, no runaway up move shall occur until the Markets moves past these levels with significant volumes.
The lead indicators point towards possibility of weakness creeping in. The RSI--Relative Strength Index on the Daily Chart is 67.55 and this has given a "sell" signal on the Charts as it has move below 70 after being in "Overbought" territory. It remains neutral with no bullish / bearish divergence and also it does not show any failure swings. The Daily MACD still continues to trade above its signal line.
The NIFTY and Stock Futures have added moderate open interest and the NIFTY PCR stands at 1.16.
It is important to note that the Government's tough stands on reforms has certainly sent good signals and has helped the sentiments. Further, its not relenting to yesterday's nationwide protest and to other threats from its political allies has also made Government's intentions very clear. HOWEVER, having said this, that if we refer to technical structure of the Markets, it is very much likely that it remains in consolidation / mildly corrective mode for some more time to come. Even on the upside a still resistance is seen at 5630 levels.
All and all, the Markets may see range bound trade and also sharp movements on either side cannot be ruled out. Intermittent profit taking bouts can also be expected and volatility may refuse to go. With no directional trigger on either side, the Markets may see some mild correction or at least consolidation wherein we may see sectoral out performance. While avoiding aggressive position, selective purchases may be made while vigilantly protecting profits on either side. Overall, continuance of cautious outlook is advised for today.
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MARKET TREND FOR TODAY
The Markets saw correction on expected lines yesterday and ended the day with modest losses. For today, expect a moderately positive opening in the Markets and the Markets are expected to trade in a range at least in the opening trade. We may continue to see the Markets in corrective / consolidation mode and thus, the intraday trajectory that it forms post opening would be crucial to dictate the trend for today. The initial positive trade wold be due to the positive sentiment on Government not relenting for roll backs after the nation wide protests yesterday.
Having said this, the levels of 5630 has continued to remain a immediate resistance in form of Double Top resistance and the levels of 5630 and 5650 shall act as immediate resistance. As mentioned in our yesterday's edition, no runaway up move shall occur until the Markets moves past these levels with significant volumes.
The lead indicators point towards possibility of weakness creeping in. The RSI--Relative Strength Index on the Daily Chart is 67.55 and this has given a "sell" signal on the Charts as it has move below 70 after being in "Overbought" territory. It remains neutral with no bullish / bearish divergence and also it does not show any failure swings. The Daily MACD still continues to trade above its signal line.
The NIFTY and Stock Futures have added moderate open interest and the NIFTY PCR stands at 1.16.
It is important to note that the Government's tough stands on reforms has certainly sent good signals and has helped the sentiments. Further, its not relenting to yesterday's nationwide protest and to other threats from its political allies has also made Government's intentions very clear. HOWEVER, having said this, that if we refer to technical structure of the Markets, it is very much likely that it remains in consolidation / mildly corrective mode for some more time to come. Even on the upside a still resistance is seen at 5630 levels.
All and all, the Markets may see range bound trade and also sharp movements on either side cannot be ruled out. Intermittent profit taking bouts can also be expected and volatility may refuse to go. With no directional trigger on either side, the Markets may see some mild correction or at least consolidation wherein we may see sectoral out performance. While avoiding aggressive position, selective purchases may be made while vigilantly protecting profits on either side. Overall, continuance of cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
