The Markets spent a resilient session yesterday as it continued to consolidate rather than correct and ended flat with nominal losses. In this process, the Markets have continued to give a lower top and lower bottom on the Daily High Low Charts.
Today is going to be no different. The Markets are likely to open on a flat note and look for directions heavily depending upon the volumes and the intraday trajectory that it forms.
With the Markets likely to open on a flat note, the levels of 5670 and 5710 continues to remain resistance levels and the supports continue to exist at 5580 and 5520 levels on the lower side.
All lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Chart is 60.5435 and it shows no negative divergence or failure swings and is therefore neutral. The Daily MACD continues to trade above its signal line.
On the Candles, A long upper shadow occurred. Since this has occurred after the pullback near the high price levels, this can be regarded as a potentially bearish indication. Also A Spinning Top has occurred which signifies potential temporary weakness at current levels.
The Markets have shown resilience in last couple of session as it has seen some short covering from lower levels keeping is range bound and consolidation instead of correcting. However, in doing so, the volumes have been lower than average and the formation of lower top and bottom have continued so far. Also, given this technical reading on Candles, and the lead indicators neutral, we continue to advise caution until the Markets moves past the levels of 5710 again. Until this happens, as we have been advising this week, highly stock specific and selective approach should continued to be adopted while vigilantly protecting profits at higher levels. Overall, a range bound, slightly volatile day expected. Cautious outlook is advised for today.
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
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