MARKET TREND FOR TODAY
The Markets corrected yesterday on expected lines as the resistance zone of 6230 held out once again. The Markets
corrected sharply to intraday low of 6116.80 after the day's high of 6217.95.
Today as well, expect the Markets to open on a flat note and look for directions. The levels of 6230-6250 have become a immediate top for the Markets and the Markets would continue to resist at these levels. Today, we can expect the corrective mood in the Market to continue and expect a range bound session.
The levels of 6230 would continue to act as immediate resistance for the Markets followed at 6250. The supports exists at 6120 and 6075 levels.
The RSI--Relative Strength Index on the Daily Chart is 65.2836 and it is neutral as it shows no bullish or bearish divergence or failure swings. The Daily MACD continues to trade above its signal line.
On the derivative front, NIFTY October futures have continued to shed 7.03 lakh shares or 3.85% in open interest. This shows net unwinding of long positions and profit taking at higher levels.
It is clear from pattern analysis that the levels of 6230-6250 have become immediate top for the Markets and the Markets would continue to resist at these levels. No sustainable up move shall occur until the Markets move past these levels.
All and all, until the Markets move past these levels, no aggressive purchases should be made. However, on the other hand, any dip or profit taking should be utilized to make selective purchases on lighter note as sector out performance would continue. Overall, positive caution is advised for today.
Today as well, expect the Markets to open on a flat note and look for directions. The levels of 6230-6250 have become a immediate top for the Markets and the Markets would continue to resist at these levels. Today, we can expect the corrective mood in the Market to continue and expect a range bound session.
The levels of 6230 would continue to act as immediate resistance for the Markets followed at 6250. The supports exists at 6120 and 6075 levels.
The RSI--Relative Strength Index on the Daily Chart is 65.2836 and it is neutral as it shows no bullish or bearish divergence or failure swings. The Daily MACD continues to trade above its signal line.
On the derivative front, NIFTY October futures have continued to shed 7.03 lakh shares or 3.85% in open interest. This shows net unwinding of long positions and profit taking at higher levels.
It is clear from pattern analysis that the levels of 6230-6250 have become immediate top for the Markets and the Markets would continue to resist at these levels. No sustainable up move shall occur until the Markets move past these levels.
All and all, until the Markets move past these levels, no aggressive purchases should be made. However, on the other hand, any dip or profit taking should be utilized to make selective purchases on lighter note as sector out performance would continue. Overall, positive caution is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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