Due
to technical glitch, we are not able to send across your copy of Daily
Market Trend Guide in regular PDF Format. We are reproducing the brief
version of the Market Trend for today. Inconvenience caused is sincerely
regretted.
Expect the Markets to open today on a positive note and look for directions as it shall continue to remain in a broad range of 5950-6042. The markets went almost near the lower end of the range yesterday and post positive opening today, will continue to remain and trade in that range. Intraday trajectory, therefore, shall continue to remain critically important for the Markets to decide the trend for today.
The levels of 6020 and 6042 shall continue to act as resistance for the Markets and the levels of 5950-5940 shall act as immediate supports. These levels will remain constant so long as Markets continue to trade in this capped range and consolidate.
The RSI--Relative Strength Index on the Daily Chart is 59.79 and is neutral. The Daily MACD too continues to trade above its signal line. The only worry factor that is observed is that the NIFTY January Futures have again shed over 1.89 lakh shares or 1.21% in net Open Interest. This pattern of continuing shedding of open interest is being seen since last couple of days.
With the above reading, it again shows that the Markets shall continue to trade in a range. Since open interest shedding shows unwinding of longs, it remains to be seen if some buying emerges today.
All and all, this reading emphasizes that we shall continue to trade in a range and the Markets will have to move past 6042 in order to continue with its breakout. In case of any weakness, supports would exist at 5950. If nothing happens, this will keep Markets in this broad range. Overall, while avoiding shorts and aggressive positions, selective purchases may be made while approaching the Markets with cautious optimism.
BRIEF MARKET FORECAST FOR THE DAY
Expect the Markets to open today on a positive note and look for directions as it shall continue to remain in a broad range of 5950-6042. The markets went almost near the lower end of the range yesterday and post positive opening today, will continue to remain and trade in that range. Intraday trajectory, therefore, shall continue to remain critically important for the Markets to decide the trend for today.
The levels of 6020 and 6042 shall continue to act as resistance for the Markets and the levels of 5950-5940 shall act as immediate supports. These levels will remain constant so long as Markets continue to trade in this capped range and consolidate.
The RSI--Relative Strength Index on the Daily Chart is 59.79 and is neutral. The Daily MACD too continues to trade above its signal line. The only worry factor that is observed is that the NIFTY January Futures have again shed over 1.89 lakh shares or 1.21% in net Open Interest. This pattern of continuing shedding of open interest is being seen since last couple of days.
With the above reading, it again shows that the Markets shall continue to trade in a range. Since open interest shedding shows unwinding of longs, it remains to be seen if some buying emerges today.
All and all, this reading emphasizes that we shall continue to trade in a range and the Markets will have to move past 6042 in order to continue with its breakout. In case of any weakness, supports would exist at 5950. If nothing happens, this will keep Markets in this broad range. Overall, while avoiding shorts and aggressive positions, selective purchases may be made while approaching the Markets with cautious optimism.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.