MARKET TREND FOR TODAY
The Markets yesterday came off over 100-points from its day's low to end the day flat with nominal loss of 5-points and in the process have formed a higher top but similar bottom on the Daily High Low Charts. The session yesterday was market with very low, lower than average volumes.
For today, we can again expect the Markets to open on a flat note and look for directions. Given the lack of volumes, the intraday trajectory that the Markets form would be critical for the intraday trend. For today, the levels of 4985 and 5025 shall act as resistance and the levels of 4910 and 4880 shall act as supports.
All lead indicators present neutral to positive indicators. The RSI--Relative Strength Index on the Daily Chart is 41.1328 and it shows no negative divergence or failure swings and is therefore neutral. The Daily MACD continues to remain bullish as it trades above its signal line.
The FIIs and DIIs have remained net buyers yesterday. Also, the NIFTY futures have added a nominal 0.25% of Open Interest and has not reported any decrease, signifying there has been no unwinding of long positions.
Also, the volumes, which have been lower than its average can be considered as a positive point in the correcting Markets. Overall, the Markets has relatively less downside, however, it shall continue to trade volatile and range bound and shall await RBI Policy announcements on Friday, 16th, wherein a rise of 25 basis points rate hike is discounted for.
All and all, it is highly recommended to remain highly selective and adopt a stock specific approach while continuing to protect profits at higher levels. Overall, cautious outlook is advised for the day, while avoiding shorts.
Milan Vaishnav,
Consulting Technical Analyst,
http://www.mymoneyplant.co.in/
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
The Markets yesterday came off over 100-points from its day's low to end the day flat with nominal loss of 5-points and in the process have formed a higher top but similar bottom on the Daily High Low Charts. The session yesterday was market with very low, lower than average volumes.
For today, we can again expect the Markets to open on a flat note and look for directions. Given the lack of volumes, the intraday trajectory that the Markets form would be critical for the intraday trend. For today, the levels of 4985 and 5025 shall act as resistance and the levels of 4910 and 4880 shall act as supports.
All lead indicators present neutral to positive indicators. The RSI--Relative Strength Index on the Daily Chart is 41.1328 and it shows no negative divergence or failure swings and is therefore neutral. The Daily MACD continues to remain bullish as it trades above its signal line.
The FIIs and DIIs have remained net buyers yesterday. Also, the NIFTY futures have added a nominal 0.25% of Open Interest and has not reported any decrease, signifying there has been no unwinding of long positions.
Also, the volumes, which have been lower than its average can be considered as a positive point in the correcting Markets. Overall, the Markets has relatively less downside, however, it shall continue to trade volatile and range bound and shall await RBI Policy announcements on Friday, 16th, wherein a rise of 25 basis points rate hike is discounted for.
All and all, it is highly recommended to remain highly selective and adopt a stock specific approach while continuing to protect profits at higher levels. Overall, cautious outlook is advised for the day, while avoiding shorts.
Milan Vaishnav,
Consulting Technical Analyst,
http://www.mymoneyplant.co.in/
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
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