MARKET TREND FOR TODAY
After spending nearly entire session in consolidation, the Markets on Friday eased little more as it ended the day posting a net loss of 55.90 points, and in the process forming a lower top and lower bottom on the Daily High Low Charts.
For today, expect the Markets to open on a flat note and look for directions. Today, we can fairly expect the action to be quited and muted but at the same time, we can also fairly expect stability to return to the Markets and we are likely to see some respite from the weakness that we have been seeing. However, the Markets shall continue to critically depend upon the intraday trajectory that it forms.
For today, the levels of 4905 and 4965 shall act as resistance and the levels of 4940 and 4905 shall act as supports.
The RSI--Relative Strength Index on the Daily Chart is 39.2270 and it has reached its lowest value in last 14-days which is bearish. However, it does not show any negative divergence. The Daily MACD still continues to remain bullish as it trades above its signal line. On the Weekly Charts, the RSI is neutral at 35 and it shows no negative divergence or failure swings.
All and all, NIFTY and Stock Futures have went on to add short postions to the extent of 23% in last three session and this signifies creation of big short positions in the system. Baring the movement of some 50-odd points in NIFTY, the Markets is resting at important pattern support on both Daily and Weekly Charts. It is continued to be advised to avoid shorts and maintain liquidity to protect positions. Selective buying may be done. Overall, cautious optimism is advised today as there is no structural damage on the Charts.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
After spending nearly entire session in consolidation, the Markets on Friday eased little more as it ended the day posting a net loss of 55.90 points, and in the process forming a lower top and lower bottom on the Daily High Low Charts.
For today, expect the Markets to open on a flat note and look for directions. Today, we can fairly expect the action to be quited and muted but at the same time, we can also fairly expect stability to return to the Markets and we are likely to see some respite from the weakness that we have been seeing. However, the Markets shall continue to critically depend upon the intraday trajectory that it forms.
For today, the levels of 4905 and 4965 shall act as resistance and the levels of 4940 and 4905 shall act as supports.
The RSI--Relative Strength Index on the Daily Chart is 39.2270 and it has reached its lowest value in last 14-days which is bearish. However, it does not show any negative divergence. The Daily MACD still continues to remain bullish as it trades above its signal line. On the Weekly Charts, the RSI is neutral at 35 and it shows no negative divergence or failure swings.
All and all, NIFTY and Stock Futures have went on to add short postions to the extent of 23% in last three session and this signifies creation of big short positions in the system. Baring the movement of some 50-odd points in NIFTY, the Markets is resting at important pattern support on both Daily and Weekly Charts. It is continued to be advised to avoid shorts and maintain liquidity to protect positions. Selective buying may be done. Overall, cautious optimism is advised today as there is no structural damage on the Charts.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
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