Today's analysis for the markets remains more or less on similar lines that of yesterday. The markets traded on a very capped range and they are yet to move past their important resistance levels of 6130-6150.

Today, the Markets are expected to open on a stronger note but again, the opening levels in the Markets would take them and make them open near resistance levels. It would be therefore, very critically important to see if the Markets sustain those levels and capitalize on that.

For today, the levels of 6150 would act as major resistance. The supports come in much lower at 5950 and 5920 levels.

The RSI on the Daily Chart is 66.1359 and it has reached its highest value in last 14 days. The Daily MACD continues to trade above its signal line. On the Candles, engulfing bullish pattern has occured. If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with NIFTY), it may be a last engulfing top which indicates a top.  The test to see if this is the case is if the next candle closes below the top of the current (white) candle's real body.

The NIFTY October futures have shown reduction in Open Interest.

Given all this in view, it is very important to see the trajectory the Markets form. It is likely that the Markets open higher, but pare gains during the session. While avoiding fresh aggressive purchases, profits on open positions should be protected. Cautious optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,