The Markets attempted to pullback on expected lines, but continued to resist to its 100-DMA for most part of the session but managed to close a notch above that as it ended the day with decent gains and in the process formed a higher top and higher bottom on the Daily High Low Charts.
For today, expect the Markets to open on a negative note and look for directions.
With the Markets expected to open on a negative note, again, like yesterday, the intraday trajectory would be critically important for the Markets in not only deciding on today’s trend, but also for coming couple of sessions.
For today, with the Markets expected to open on a lower note, the levels of 5570, 5640 shall act as resistance and the levels of 5501 and 5475 shall act as supports.
Though all lead indicators presently remain in place, they pose a weakening picture. The RSI—Relative Strength Index on the Daily Chart is 52.7392 and it continues to remain neutral as it shows no negative divergence or failure swings. The Daily MACD, though presently trades above its signal line, any further weakness may make it bearish.
Having said this, the NIFTY Futures have added only negligible 1% in Open Interest even with positive trade yesterday and even with the Markets showing a spurt towards the end of the session. This signifies that there was more of short covering in the Markets and very little conversion of longs were seen. Thus, as mentioned in our yesterday’s edition of Daily Market Trend Guide, the fresh sustainable up move shall occur only after the Markets reverses the trend to move past 5750 levels as we still continue to trade in a broad falling channel.
All and all, range bound volatile movements in the Markets cannot be ruled out coupled with some volatility ingrained in it. It is advised to continue with the highly stock specific approach with vigilant protection of profits at higher levels. Overall, 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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