Yesterday’s session remained quite subdued as the Markets traded in negative trajectory in a narrow range with overall downward bias and ended the day with moderate losses. In the process, the Markets have formed a lower top and lower bottom on the Daily High Low Charts.
Today, the Markets are expected to continue with such corrective behavior and is likely to see flat to mildly negative opening again, and again continue to depend upon the intraday trajectory that it forms.
Today, with the Markets expected to open on a flat to mildly negative note, the levels of 5590 and 5610 are likely to act as resistance and the levels of 5510 and 5480 are likely to act as supports. Much would continue to depend upon the intraday trajectory as well as the volumes which remained much on the lower side.
The RSI—Relative Strength Index on the Daily Chart is 50.9202 and is neutral as it shows no negative divergence or failure swings.
The Daily MACD has turned bearish since last two sessions and continues to remain so with it trading below its signal line.
The Markets have closed a notch below its 100-DMA of 5569 and any breach at Close levels is likely to take it to another support level of 50-DMA at 5505.
The F&O data too points towards continuing short term bearish / corrective conditions. The NIFTY Futures, though nominal, have shed total Open Interest of around 1% showing some liquidation of long positions. Stock futures too have shown shedding in Open Interest.
All and all, the corrective sentiment in the Markets is likely to continue and it is advised to remain highly selective in taking fresh long positions while vigilantly protecting profits at higher levels. Overall cautious outlook is advised for today as the Markets are likely to continue to remain in range, and also intermittently volatile.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
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