The beginning of the new trading week will be no different from the past
week. Technically, Markets are likely to
resume in the same mood from where it
paused on Friday last. Expect the market
today to open on a slightly negative note today and look for directions in
initial hours of the trade today. The market may witness bouts of buying later in the day, but technical
indicators indicate that these would be fickle as markets are likely to see
some selling pressure at every rise.
Pattern Analysis of Nifty’s Daily High Low Chart indicates that Market
is approaching its import support line albeit of a bearish formation. Supports
are expected, in case of weakness , in
the range of 8056 8020 levels. The
formation on this chart is Descending Triangle
as seen in the Chart which is a bearish formation. Therefore expect every rise
in the market to meet with selling spree.
Important Indicator MACD is is bearish
since it is trading below its signal line.The MACD crossed below its signal
line 2 periods ago. Another important Indicator RSI also does not draw a rosy
picture for today as it has exhibited Failure
Swings (also known as support or resistance penetrations or breakouts) The RSI
has just reached its lowest value in the last 14 periods. This is bearish.
Overall, from the above explained Technical
Analysis of the Nifty for today, markets
are expected to continue its depressed trend today also. Occasional bouts of buying will meet with
selling pressure.
It is therefore strongly advised to be
extremely vigilant at every rise in the market today, to avoid getting trapped in
occasional bouts of rise in the market. Continuance of highly cautious outlook is
advised for the day.
Milan Vaishnav,
Consulting Technical Analyst,
Af. Member: Market Technicians Association (MTA), USA
Af. Member: Association of Technical Market Analysts, INDIA
www.MyMoneyPlant.co.in
Af. Member: Market Technicians Association (MTA), USA
Af. Member: Association of Technical Market Analysts, INDIA
www.MyMoneyPlant.co.in
+91-98250-16331
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