MARKET TREND FOR THURSDAY, SEPTEMBER 15, 2016
Indian Equity Markets traded more or less on expected lines
as it managed to keep its head above the critical 8700-mark for the most part
of the day before ending with modest gains. Today’s session is likely to be
crucial once again and therefore, the analysis for today would remain on
similar lines. The levels of 8700-8730 would be crucial to watch out for and it
would be critically important for the Markets to trade above 8700-mark to avoid
any weakness from setting in.
The levels of 8745 and 8790 will act as immediate resistance
levels for the Markets. The supports would come in at 8700 and 8665.
The RSI—Relative Strength Index on the Daily Chart is
51.1954 and it remains neutral as it shows no bullish or bearish divergence or
any failure swings. The Daily MACD continue to remain bearish as it trades blow
its signal line.
On the derivative front, the NIFTY September futures have
shed over 1.82 lakh shares or 0.56% in Open Interest indicating minor short
covering from lower levels.
The Pattern Analysis on the Daily Chart point towards some
stability returning to the Markets. After achieving 100% retracement /
throwback from the breakout levels of 8700-8728 zone, the Markets have been
attempting to find immediate support at these levels. Further, the lead
indicators too rest at pattern support and so do the Markets. The F&O data
shows minor short covering from lower levels point discomfort of market
participants below 8700 levels. The
F&O data, coupled with technical indicator suggest possibility of Markets
taking support at the critical 8700-mark. In any case, the Markets will have to
see themselves trading above these critical levels to avoid any more weakness
from setting in.
IT Sector relatively under-performed yesterday but continued
to see some accumulation at lower levels. This will continue and we might see
it picking up in coming days. Apart from this, selective stocks from basket of
NIFTY JR, Banks and select quality MidCaps will continue to outperform today as
well. There is no structural breach on the Charts as the Markets continue to
trade above all of its DMAs. Overall, cautious optimism is advised for the day.
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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