MARKET TREND FOR TUESDAY, SEPTEMBER 06, 2016
After breaking out from a
congestion zone on August 30th, the Markets have consolidated over
past three sessions laying good ground for a further up move, Today, Monday,
the Markets shall open after a day of holiday. Today’s opening would be crucial
to watch out for as we expect a modestly positive opening today. The Markets
are expected t o continue with the up move that it began in the second half of
the Friday’s session and remain positive at least in the initial stage. The
intraday trajectory that the Markets form would be critical for the remaining
part of the session.
The levels of 8825 and 8865 will continue to act as immediate resistance levels
which we expect to get tested. The supports come in at 8750 and 8720 levels.
The RSI—Relative Strength Index
on the Daily Chart is 65.9872 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 continues with its positive crossover and it remains bullish as
it trades above its signal line.
While having a look at pattern
analysis, the Markets have attempted to achieve a breakout in the session of
August 30th but it has been under sideways consolidation in last
three sessions. With the expected positive opening in the Markets, it is likely
that the Markets attempt to move past the critical resistance levels of 8825
and test further levels of 8850 and 8890 levels in coming sessions. In event of
any possible intermittent downsides, the breakout levels of 8720-8740 will
continue to send supports.
All and all, the expected
positive opening and the sustenance of such opening would be crucial for the
session today. There is slightly contradictory signals on the Daily and Weekly Charts. Though Weekly Charts
clearly suggest a possibility of a fresh up move the Daily Charts do not rule
out the Markets consolidating at higher levels for some more time. Therefore,
in event of any intermittent downsides or corrective swings, all such
opportunities should be utilized to make fresh purchases on selective note.
Overall, the inherent strength remains very much visible on the Charts.
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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