MARKET TREND FOR FRIDAY, JULY 29,
2016
The Markets had a buoyant end to the July
series while it ended yet another day with gain fuelled global liquidity and
positive sentiments. Today as well, as the country inches very near to GST
becoming a reality, the Markets may open on a flat to mildly positive note and
look for directions. Though the technicals clearly suggest that the Markets may
consolidate at higher levels, immediate
major downsides remain limited and the domestic factors are likely to provide
positive cues to the markets.
For today, the levels of 8675 and 8720 will
act as immediate resistance levels for the Markets. The supports come in at
8610 and 8565 levels.
The RSI—Relative Strength Index on the
Daily Chart is 69.28 and it inches near
to its overbought territory. The RSI does not show any failure swing but while
NIFTY has formed a fresh 14-period high for the Markets, the RSI has not done
so and this has resulted in Bearish Divergence on Daily Charts. The Daily MACD
stays bullish as it trades above its signal line.
On the derivatives front, the NIFTY August
series have added in net open interest. The NIFTY PCR has begun with 1.24 as
compared to 1.08 and this remains bit on the higher side.
While having a look at the pattern
analysis, the Markets have continued to remain in the upward rising channel and
have been continuing to track the upper rising line of the said channel drawn
from February lows. Having said this, it is much evident from the overall
structure of the Charts that the Markets are being fuelled explicitly by the
gush of global liquidity and while it continues to inch upwards, the
corrections have been mainly in form of intraday dips or range bound consolidation.
However, having said this, this very structure of the Markets continue to it
itself vulnerable to intermittent bouts from higher levels.
Overall, the lead indicators persistently suggest
signs of fatigue at higher levels. However, the Markets may not correct much
and the corrections may remain limited to range bound consolidations and intermittent
profit taking bound. It would be important to note that the Markets will
continue to remain exposed to intraday volatility and out performance will
remain limited to specific stocks. While keeping purchases limited and guarding
profits at higher levels, cautious outlook is advised for the day.
Milan
Vaishnav, CMT
Technical Analyst
Member: Market
Technicians Association, (MTA), USA
Member:
Association of Technical Market Analysts, (ATMA), INDIA
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.