MARKET TREND FOR TODAY
The markets continued with its correction, precisely as analyzed in our Friday’s edition of Daily Market Trend Guide as it ended the day with losses and in the process have formed a lower top but higher bottom on the Daily High Low Charts.
The Markets have closed near the low point of the day, and technically speaking, it is technically suppose to open in the negative and continue with the correction.
However, since global markets are stable to positive, we may see flat to mildly positive opening in the Markets. With the Markets expected to open on a flat to mildly positive note, the levels of 5900 and 5925 shall continue to act as resistance and the levels of 5724 and 5707 shall act as supports.
The RSI—Relative Strength Index on the Daily Chart is 58.2198 and it is reached its lowest value in last 15 days, which is BEARISH. Also, RSI has set a new 14-day low where as NIFTY has not yet. This is BEARISH DIVERGENCE. The Daily MACD continues to trade above its signal line but is getting weaker with every session and is likely to give a sell signal.
On the Weekly Charts, the RSI at 54.9229 is neutral without any failure swing and negative divergence. However, on the Candles A Spinning Top has occurred and it is typically bearish if it occurs after rally which signifies a potential weekly top formation.
Apart from this, the NIFTY has added Open Interest on the short side and significant put writing is observed at critical levels. With the FIIs remaining net sellers on Friday, the levels mentioned here shall continue to act as resistance and short term weakness is likely to be seen with potential support coming it as 5724 and 5707 levels which are 200 and 100 DMAs respectively. Until this happens, longs should be taken very selectively. Even if minor short covering is seen, very cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
The markets continued with its correction, precisely as analyzed in our Friday’s edition of Daily Market Trend Guide as it ended the day with losses and in the process have formed a lower top but higher bottom on the Daily High Low Charts.
The Markets have closed near the low point of the day, and technically speaking, it is technically suppose to open in the negative and continue with the correction.
However, since global markets are stable to positive, we may see flat to mildly positive opening in the Markets. With the Markets expected to open on a flat to mildly positive note, the levels of 5900 and 5925 shall continue to act as resistance and the levels of 5724 and 5707 shall act as supports.
The RSI—Relative Strength Index on the Daily Chart is 58.2198 and it is reached its lowest value in last 15 days, which is BEARISH. Also, RSI has set a new 14-day low where as NIFTY has not yet. This is BEARISH DIVERGENCE. The Daily MACD continues to trade above its signal line but is getting weaker with every session and is likely to give a sell signal.
On the Weekly Charts, the RSI at 54.9229 is neutral without any failure swing and negative divergence. However, on the Candles A Spinning Top has occurred and it is typically bearish if it occurs after rally which signifies a potential weekly top formation.
Apart from this, the NIFTY has added Open Interest on the short side and significant put writing is observed at critical levels. With the FIIs remaining net sellers on Friday, the levels mentioned here shall continue to act as resistance and short term weakness is likely to be seen with potential support coming it as 5724 and 5707 levels which are 200 and 100 DMAs respectively. Until this happens, longs should be taken very selectively. Even if minor short covering is seen, very cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.