MARKET TREND FOR THURSDAY, SEPTEMBER 01, 2016
The Markets yesterday
continued to surge and ended the day with decent gains but also showed some
fatigue at higher levels as it came off from its intraday highs. Today, though
we can expect the Markets to remain stable, some signs of fatigue will be
clearly visible in the Markets today. The levels of 8819.20 will be important
to watch out for and there are chances that some consolidation happens around
these levels.
For today, the levels of 8820 and 8855 will be critical
levels to watch out for and are likely to act as immediate resistance for the
Markets. The supports will come in at 8750 and 8725 levels.
The RSI—Relative Strength Index on the Daily Chart is
65.0915 and it has reached its highest value in last 14-days which is bullish.
It does not show any bullish or bearish divergence. The Daily MACD has reported
a positive crossover and it is now
bullish as it trades above its signal line.
On the derivative front, the NIFTY September futures have
added over 25.72 lakh shares or 8.45% in Open Interest. The NIFTY PCR stands at
1.10 as against 1.06 yesterday.
If we have look at pattern analysis, after remaining in
upward rising channel from February lows and after making 8728 as its immediate
high, the Markets had turned sideways and had been consolidating in a capped range
through major part of August. In previous two sessions, the Markets have
achieved a break out on the upside and today’s gains have confirmed that
breakout. However, given the fact that the Markets have risen nearly 215-odd
points in the last 3 sessions, some amount of consolidation cannot be ruled
out. In any case, the levels of 8700-8728 will continue to lend crucial support
to the Markets.
There are chances that some amount of consolidation happens
at higher levels but it would be healthy for the Markets and the undercurrent
continues to remain buoyant. We will see some shift in the sectoral performance
but the inherent buoyancy in the Markets will be maintained. Once again while
avoiding any blanket shorts in the Markets, all consolidation and minor or
intermittent dips should be utilized to make selective purchase in the Markets.
Milan Vaishnav,
CMT
Technical Analyst
(Research Analyst, SEBI Reg.
No. INH000003341)
Member: Market
Technicians Association, (MTA), USA
Member: Association of Technical Market Analysts,
(ATMA), INDIA
+91-98250-16331
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