MARKET TREND FOR MONDAY, JULY 25,
2016
As evident from the Daily Charts, the
Markets have spent the entire previous week in a range bound consolidation and
it traded in a capped range maintaining positive bias. The Global Markets trade
stable to positive and with no negative technical cues, the Markets are well
expected to continue with its consolidation this week as well. Volatility will refuse
to leave as we begin with expiry week of current derivative series. We can
fairly expect the Markets to open on a quiet and flat to mildly positive note
and look for directions.
Today, the levels of 8585 and 8620 will act
as immediate resistance levels for the Markets. The supports come in at 8475
and 8450 levels.
The RSI—Relative Strength Index on the
Daily Chart is 65.0976 and it remains neutral as it shows no bullish or bearish
divergence or any failure swings. The Daily MACD stays bullish as it trades
above its signal line. On the Weekly Charts, the Weekly RSI is 66.4637 and this
too remains neutral as it shows no bullish or bearish divergence or any failure
swings. Weekly MACD continues to remain bullish while trading above its signal
line.
On the derivative front, the NIFTY July
futures have added over 1.35 lakh shares or 0.58% in Open Interest. The NIFTY
PCR stands at 1.03 as against 1.08.
Coming to pattern analysis, the Markets
have been fiercely consolidating in a much capped range after it gained 350-odd
points from a clear upside breakout from 8295 levels. Though the level of 8595
continues to remain a immediate top for the Markets, the Markets have been
steadfastly maintaining a positive bias while consolidating since entire previous
week. A fresh upside will occur once the Markets moves past the 8595 – 8610 range
and sustain above that. In case of continuing consolidation, the downsides will
remain limited.
Overall, while the inherent trend
continuing to display buoyancy, the Markets too continue to show strength while
remaining in range bound consolidation. With inherent trend intact, any
downsides should be continued to be used to make selective purchases. While
sectoral rotation will continue on weekly basis, continuing positive outlook
with vigil eye over 8595-8610 range is advised for 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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