MARKET TREND FOR TODAY
The Markets resisted yesterday to the very categorically stated levels of 4960-4970 levels as it came off from day’s high to end the day with losses and in the process have formed a similar top but slightly higher bottom on the Daily High Low Charts.
Today, we enter into expiry day of the current derivative series and the session is likely to remain dominated with rollover centric activities heavily. Yesterday also, much of the behavior of the markets can be attributed to rollover dominated activities.
Today, expect the Markets to open again on a fairly positive and stronger note and look for directions. But again, as like in the past, the Markets will have to remain in positive intraday trajectory in order to capitalize on today’s positive opening. For today, the levels of 4930 and 4970 are expected to act as resistance and the levels of 4860 and 4810 are supports on the lower side.
The RSI—Relative Strength Index on the Daily Chart is 29.4390 an is neutral as it shows no negative divergence or failure swings. However, it has again gone into OVERSOLD zone, from where it is usually expected to bottom out. The Daily MACD continues to trade below its signal line but looks improving.
As we mentioned a broken Double Bottom to act as resistance, there is a Double Bottom support in the range in 4786-4810 levels which is a major support in case of any downside. Given these levels, the Markets are likely to remain in a broad range of 4800-4970 in immediate term and sustainable pullback may occur only after the Markets moves past the levels of 4970 and sustains above that.
All and all, positive opening expected and the Markets will have to remain in positive trajectory in order to capitalize on this. Also, today being the last day of expiry and the session is likely to remain dominated with rollover centric activities, thus keeping some volatility in the Markets. Stock specific positive caution advised as overall bias remains towards upside.
Milan Vaishnav,
Consulting Technical Analyst,
+91-9825016331
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