The Markets continued its up move on the second last day of the expiry of the current series by opening up and then trading in a capped range and closing with gains. The Markets have, in this process, formed a higher top and higher bottom on the Daily High Low Charts.
Today, we enter into the expiry day of the current June Series and the day, as like yesterday, is expected to remain largely dominated with rollover centric activities.
Today, in line with positive global markets, we may again see the Markets opening on a positive note and look for directions, largely depending on the intraday trajectory that it forms but the session, as mentioned above, will see more activities remaining rollover centric. For today, the levels of 5630 and 5645 shall act as resistance and the levels of 5540 and 5520 shall act as supports.
The RSI—Relative Strength Index on the Daily Charts is 61.1047 and it has reached its highest value in last 14-days which is bullish. It does not show any negative divergence.
The Daily MACD continues to trade above its signal line.
At this juncture, we would again point out that after the lows the Markets made on June 20th, the Markets have moved up / pulled back over 400 points or nearly 9% in consecutive sessions and this is certainly unhealthy given the fact that it did not resist to both of its 50-DMA and 100-DMA especially when both of these averages have reported a negative crossover. This clearly indicates that the up move that we saw, especially in last 2-3 sessions is momentum driven, rollover centric and in defiance of some technicals.
All and all, today we may see similar behavior in the Markets as we enter into expiry, but we continue to maintain caution against any fresh long position as the Markets badly need to correct or at least consolidate to make the pullback healthy and sustainable. We continue to advice to adopt cautious outlook and keep protecting profits at higher levels.
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
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