MARKET TREND FOR WEDNESDAY, APRIL 13,
2016
The Markets are likely to open on a
decently positive note following stable Global cues. With this, the Markets may
attempt to move past the resistance zone of 7700-7730 levels. However, it would
be thoroughly important to see that the Markets maintain its expected opening
gains and capitalize on it. It is also important to note that we once again
have a short week with tomorrow and day-after-tomorrow being holidays on
account of Dr. Ambedkar Jayanti and Ram Navmi respectively.
For today, the levels of 7730 and 7775 will
act as immediate resistance levels for the Markets. Supports come in much lower
at 7660 and 7610 levels.
The RSI—Relative Strength Index on the Daily
Chart is 58.8997 and it remains neutral as it shows no bullish or bearish
divergence or any failure swings. The Daily MACD is still bearish as it trades
below its signal line.
On the derivative front, the NIFTY April
futures have shed over 5.07 lakh shares or 3.30% in Open Interest. The NIFTY
PCR stands at 0.86 as against 0.83 levels.
Coming to pattern analysis, the Markets
will attempt to move past the pattern resistance zone of 7700-7730 levels. It
will have a minor resistance at 7775 levels. However, apart from all this, the
key thing would be the ability of the Markets to capitalize on the expected
positive opening. It would be very essential for the Markets to maintain the
expected opening gains and continue with the up move. However, the consistently
declining Open Interest with every up move certainly raises a question mark on
the sustainability of the up moves.
Overall, we continue to reiterate that all
the up moves should be utilized to protect and book profits. New positions should
be created but the quantity should be kept moderated and purchases should be
done on highly selective basis. More emphasis should be laid on booking /
protecting profits at higher levels. We continue to reiterate to maintain
cautious outlook on the Markets.
Milan
Vaishnav,
Consulting Technical Analyst
Member: Market
Technicians Association, (MTA), USA
Member: Association of Technical Market Analysts,
(ATMA), INDIA
+91-98250-16331
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