MARKET TREND FOR TUESDAY, SEPTEMBER 20, 2016
Monday’s session remained extremely range bound as the NIFTY
moved in a narrow 20-odd points for the day while the Markets ended the day
with modest gains. Today, our analysis remains on similar lines that of
yesterday as the Markets are likely to continue to positively consolidate. The
global markets too have attempted to stabilize around their key supports and
this likely to positively aid the consolidation of domestic markets. BoJ, which
is likely to make some critical changes with regard to Quantitative Easing and
the Federal Reserve, which will cast its interest rate decision will solicit some
reaction from the Markets as well.
For today, the levels of 8840 and 8895 will act as immediate
resistance levels and the supports are likely to come in at 8760 and 8730
levels.
The RSI—Relative Strength Index on the Daily Chart is
56.8151 and it remains neutral as it shows no bullish or bearish divergence or
any failure swings. The Daily MACD stays bearish while it trades above its
signal line.
On the derivative front, the NIFTY September futures have
added over 2.88 lakh shares or 0.90% in Open Interest.
Pattern analysis clearly suggests that the Markets are
currently undergoing range bound consolidation and the undercurrent remains
buoyant. After making a top at 8968 levels, the Markets achieved 100% throwback
to 8700-8730 levels and it took support there. These levels continue to act as
immediate major support and so long as it trades above this critical support
zone, it is laying groundwork for a further up move. However, in coming days,
it should be no surprise if we see capped trading range and some positive
consolidation.
All and all, the session should be approached with positive
bias. Though some amount of volatility cannot be ruled out, all dips should be
continued to be utilized to make selective purchases while avoiding shorts. Sectoral
out-performance will continue and stock specific action will dominate coming
sessions. Overall, positive outlook 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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