MARKET TREND FOR MONDAY, SEPTEMBER 26, 2016
Indian Equity Markets have continued to consolidate and
Weekly Charts and on Daily Charts as well, they are likely to continue to
consolidate in a capped range while the overall trend continue to remain buoyant
and intact. Monday’s session is likely to see a modest start to the Markets
sand the levels of 8880 acting as intermediate resistance. Beginning tomorrow,
we also enter expiry week and we will continue to see the coming sessions
remaining dominated with rollover centric activity as well.
For today, the level of 8880 and 8940 will act as immediate
resistance levels whereas supports will come in at 8775 and 8750 levels.
The RSI—Relative Strength Index on the Daily Chart is
57.0474 and it remains neutral as it shows no bullish or bearish divergence or
any failure swings. The Daily MACD stands bearish as it trades below its signal
line. A Big Black Candle occurring near the 8890 levels have added
credibility to the possible resistance levels in this area.
On the derivative front, the NIFTY September futures have
shed over 8.88 lakh shares or 2.76% in Open Interest. This continues to point
towards some unwinding/offloading of long positions.
Coming to pattern analysis, the Markets have formed an
intermediate high at 8968 levels and this level remain sacrosanct as this point
of time. A lower top has been observed at 8890 levels and a big black candle
formation at this point establishes the credibility of this resistance level
and minor confirmation of a lower top. Given this formation, some amount of
consolidation cannot be ruled out even if the Markets see some temporary range
bound movement.
All and all, the overall structure on the Daily Chart
remains intact and inherent trend remain buoyant. The levels of 8750 will be
critical support in event of any consolidation. Individual stock specific
strategy should be adopted and we reiterate to utilize any dips, if any, to
make select purchases as overall trend remains intact.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg.
No. INH000003341)
Member:
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
Association of Technical Market Analysts, (ATMA), INDIA
http://milan-vaishnav.blogspot.com
+91-98250-16331
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