MARKET TREND FOR TODAY
After nine sessions of decline, the Markets finally attempted to rebound which was very much overdue and very evidently expected as mentioned in our Special Note (Edition dated Friday, 6th May), the Markets ended with gains and in the process have formed a similar top but higher bottom on the Daily High Low Charts.
Today’s session remains critically important for the Markets as the attempted reversal / bottom formation should get confirmed today in form of a higher top and bottom on the Daily Charts.
The Markets today are expected to open on a positive note and look for directions and it would be again critically important for the Markets to remain in rising trajectory to capitalize on the positive opening. For today, the levels of 5624 and 5670 shall act as resistance and the levels of 5525 and 5480 shall act as support.
The RSI—Relative Strength Index on the Daily Chart is 40.23 and it shows no negative divergence or a failure swing and is therefore neutral. The Daily MACD however still continues to trade below its signal line.
On Weekly Charts too, RSI is neutral as it show no negative divergence or failure swings. The MACD however, continues to remain in Buy mode as it trades above its signal line.
Friday’s session saw just 0.21% of addition in NIFTY Futures Open Interest which indicates there was more of short covering any very little fresh buying. However FIIs remained net buyers in F&O segment after nine days which is positive sign. DIIs continued to remain net buyers.
It is, therefore, critically important that the markets capitalizes on the positive opening that it is likely to get today. Stock specific purchases while protecting profits at higher levels may be continued. Though no clear signals / confirmation of reversal yet, the bias remains on the upside. Positive caution is advised.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
After nine sessions of decline, the Markets finally attempted to rebound which was very much overdue and very evidently expected as mentioned in our Special Note (Edition dated Friday, 6th May), the Markets ended with gains and in the process have formed a similar top but higher bottom on the Daily High Low Charts.
Today’s session remains critically important for the Markets as the attempted reversal / bottom formation should get confirmed today in form of a higher top and bottom on the Daily Charts.
The Markets today are expected to open on a positive note and look for directions and it would be again critically important for the Markets to remain in rising trajectory to capitalize on the positive opening. For today, the levels of 5624 and 5670 shall act as resistance and the levels of 5525 and 5480 shall act as support.
The RSI—Relative Strength Index on the Daily Chart is 40.23 and it shows no negative divergence or a failure swing and is therefore neutral. The Daily MACD however still continues to trade below its signal line.
On Weekly Charts too, RSI is neutral as it show no negative divergence or failure swings. The MACD however, continues to remain in Buy mode as it trades above its signal line.
Friday’s session saw just 0.21% of addition in NIFTY Futures Open Interest which indicates there was more of short covering any very little fresh buying. However FIIs remained net buyers in F&O segment after nine days which is positive sign. DIIs continued to remain net buyers.
It is, therefore, critically important that the markets capitalizes on the positive opening that it is likely to get today. Stock specific purchases while protecting profits at higher levels may be continued. Though no clear signals / confirmation of reversal yet, the bias remains on the upside. Positive caution is advised.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
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