MARKET TREND FOR MONDAY, JULY 11,
2016
The Markets continued to trade in the
prescribed range on Friday and while it ended the day with modest losses, it
did take support on the rising trend line drawn from February lows. Today, we
can expect a positive opening in the Markets supported by stable global cues.
However, with the Friday’s low acting as support, it would be important to see
if the Markets are able to sustain and capitalize on expected positive opening.
The levels of 8400 will continue to act as immediate top for the Markets.
For today, the levels of 8360 and 8400 will
act as immediate resistance levels for the Markets. The supports come in at
8270 and 8230 levels.
The RSI—Relative Strength Index on the
Daily Chart is 60.7842 and it is neutral as it shows no bullish or bearish
divergence or any failure swing. The Daily MACD is bullish as it trades above
its signal line. On the Weekly Charts, the Weekly RSI is 62.0798 and this too
remains neutral as it shows no bullish or bearish divergence or any failure
swings. The Weekly MACD is bullish as it continues to trade above its signal
line.
On the derivative front, the NIFTY July
futures have shed over 4.01 lakh shares
or 2.15% in Open Interest. For the Markets to stage a possible continuation
of uptrend, it needs to build up on fresh position.
On the pattern analysis front, the Markets
have managed to keep themselves once again in the broad upward rising channel
which is drawn from February lows. Having said this, as mentioned often in our
previous editions, the Markets have managed to move past its previous top of
8298 and have given a fresh upward breakout. However, after forming an
intermediate top of 8398 and rising nearly 400-odd points from the lows that it
formed on June 24th, it has been consolidating in a capped range and
has taken support on the rising trend line drawn from February lows.
With a positive opening expected, we
continue to reiterate that even if the Markets continue to consolidate, its
inherent strength is quite evident and the undercurrent remains buoyant. Any
consolidation or profit taking bouts that we witness should be utilized to make
fresh purchases. However, we will continue to see sectoral out performance and
some rotational shifts in the exposures is also likely to be witnessed.
Overall, positive outlook is advised on the Markets today.
Milan
Vaishnav, CMT
Technical Analyst
Member: Market
Technicians Association, (MTA), USA
Member:
Association of Technical Market Analysts, (ATMA), INDIA
+91-98250-16331
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