Daily Market Trend Guide -- Thursday, April 07, 2016

April 07, 2016

MARKET TREND FOR THURSDAY, APRIL 07, 2016

The Markets yesterday consolidated and the session remained ranged as the Markets ended the day with minor gains. Today, we can expect the Markets to open on a flat to mildly negative note and analysis for today would remain more or less similar on yesterday’s lines. Today, we can fairly expect the markets to remain ranged and trade with downward bias with the level  of 100-DMA acting as major support at Close levels.

For today, the levels of 7640 and 7695 will act as immediate resistance levels for today. The supports come in at 7570 and 7510 on the lower side.

The RSI—Relative Strength Index on the Daily Chart is 53.9618 and it remains neutral as it shows no bullish or bearish divergence or any failure swings. The Daily MACD stands negative as it has reported a negative crossover and now trades below its signal line.

On the derivative front, the NIFTY April futures have shed over 7 lakh shares or 3.93% in Open Interest. This very clearly signifies and makes evident offloading and unwinding of long positions in the Markets.

Coming to pattern analysis, the Markets have kept the zones of 7700-7750 sacrosanct as it failed to move past these levels after couple of days of consolidation. With the trend line, which is drawn from 8600 and falling now has values of 7700 which will continue to pose resistance to the Markets. Having said this, as mentioned often in our previous editions, the Markets will show no runaway rise until it moves past these levels. Until this happens, it will continue to see ranged movement with downward bias with the level of 100-DMA acting as important support at Close levels.

Overall, while keeping the analysis on yesterday’s lines, we continue to reiterate a word of caution in the Markets. Practically speaking, from current levels until 7700, the Markets are more in a no-trade zone and it will continue to oscillate with some amount of volatility ingrained in it until it sets a definite directional bias. Until this happens, the levels of 100-DMA will be important to watch out for. While keeping purchases very limited, cautious outlook is advised for today.

Milan Vaishnav,
Consulting Technical Analyst

Member: Market Technicians Association, (MTA), USA
Member: Association of Technical Market Analysts, (ATMA), INDIA
www.EquityResearch.asia
http://milan-vaishnav.blogspot.com

+91-98250-16331
milan.vaishnav@equityresearch.asia
milanvaishnav@yahoo.com