MARKET TREND FOR TUESDAY, NOVEMBER 01, 2016
On the
Mahurut session on Sunday, the NIFTY ended the day with modest losses while it
continued to resist to the upper line of the falling channel formed from the
8968 levels. Though, today, the NIFTY will have some adjustments to do with
global Markets while it opens, we can expect a modest start to the Markets. The
8680 and the 50-DMA will continue to remain the critical levels to watch out
for.
For today,
the levels of 8680 and 8710 will act as immediate resistance levels for the
NIFTY. The supports come in at 8620 and 8560 levels.
The RSI—Relative
Strength Index on the Daily Chart is 45.5481 and it remains neutral as it shows
no bullish or bearish divergence or any failure swings. The Daily MACD stays
bearish as it trades below its signal line. On the Weekly Charts, the Weekly
RSI is 56.3901 and this too remains neutral as it shows no bullish or bearish
divergence or any failure swings. The
Weekly MACD too is bearish as it trades
below its signal line.
On the
derivative front, the NIFTY November futures have 25,650 shares or nominal
0.14% in Open Interest.
While having
a look at pattern analysis, it remains evident that the NIFTY continues to remain
trapped in a falling channel that got initiated after the NIFTY formed the high
of 8968. Having said this, during previous sessions, the upper end of the
falling channel has continued to act as resistance for the NIFTY. Given the
obvious falling nature of such trend line, the resistance levels too keep
coming down with each passing day. This pattern resistance, and 8710, which is
the 50-DMA for the Markets will continue to pose immediate resistance to the
NIFTY. Until the NIFTY moves past these levels and closes above it, we do not
see any attempt to reverse the current intermediate trend.
All and all,
today as well, we might expect a range bound movement with the 50-DMA acting as
major pattern resistance at Close levels. On the way down, the levels of
100-DMA would be critical to watch out for. Apart from this, we will continue
to see a volatile environment and until any significant signs appear showing
the NIFTY attempting to reverse its current trend, we will continue to remain
vulnerable to sell-offs at higher levels. We reiterate to adopt a highly
cautious view on the Markets.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.