MARKET TREND FOR THURSDAY, SEPTEMBER 08, 2016
Equity Markets took a breather yesterday while ending on a
marginally lower note while continuing to exhibit internal strength.
Yesterday’s session saw the Markets consolidating on perfectly expected lines.
Today as well, we are likely to see some consolidation happening and we will
see the session remaining range bound with a positive bias. The levels of
8968.70 will act as immediate very short term resistance levels for the
Markets.
For today, the levels of 8970 and 9025 can act as technical
resistance levels while we will see supports coming in at 8885 and 8850 levels.
The RSI—Relative
Strength Index on the Daily Chart is 69.9503 and it has just moved below its
“oversold” territory from a topping formation. It remains neutral showing no
failure swings or any bullish or bearish divergence. The Daily MACD remains
bullish while trading above its signal line.
On the derivative front, NIFTY September futures 1.08 lakh
shares or 0.32% in Open Interest. The
F&O figures clearly demonstrate continuing fund flow and the liquidity
fuelling selective purchases.
While having a look at pattern analysis, the Markets
retraced after intraday highs of 8968.70 yesterday and this level will continue
to act as resistance for the immediate short term. It is expected that the Markets
will continue to consolidate before it gathers itself for a fresh further up
move. In event of further up move, the Markets are likely to track the upper
rising trend line drawn from February lows and this will comfortable aid the
Markets testing the 9000-and beyond levels. However, before this some
consolidation cannot be ruled out and this will remain in form of intermittent
profit taking bouts within a range bound movement.
While we see some consolidation happening, we will continue
to witness sector churn within the Markets. Quality midcaps and NIFTY laggards
are likely to out-perform and we will continue to see selective purchases
happening. Select Mid-caps, Media, Pharma and IT shares are likely to
outperform the benchmark.
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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