MARKET TREND FOR TUESDAY, JANUARY 03, 2017
Quite on analyzed lines, the NIFTY consolidated today after
four sessions and over 300-odd points of gains and ended the day with nominal
loss of 6.30 points or 0.08%. In a way, the Markets have displayed great amount
of strength at Close levels by not declining after robust gains over previous
days. Today, we expect a stable start once again but at the same time, we
expect the NIFTY to consolidate in a capped range. The 50 and 200-DMA of the
Markets will continue to act as resistance and we will also see some volatility
remaining ingrained in the Markets.
For today, the levels of 8065 and 8310 will act as immediate
resistance levels for the Markets. The supports will come in at 8140 and 8105
levels.
The RSI—Relative Strength Index on the Daily Chart is 53.2908
and it remains neutral as it shows no bullish or bearish divergence. No failure
swings are seen as well. The Daily MACD stays bullish while trading above its
signal line. On Candles, no significant formation is observed.
On the derivative front, the NIFTY January futures have shed
75,900 shares or 0.44% in Open Interest. The figure remains more or less
unchanged and does not signify any major shift in the underlying sentiment.
Coming to pattern analysis, the NIFTY has reached the
pattern resistance zone which lies just ahead of current levels. It has marked
the 7900-7920 zones as a important major pattern supports and currently has
reached the upper resistance zone of the broad trading range that the Markets
have traded in last couple of months. In any given case, the 7900-7950 zone
will act as major strong pattern supports and on the upside, the levels of
200-DMA will continue to act as important resistance levels for the Markets.
All and all, the NIFTY is expected to continue with its up
move and logical levels of 200-DMA which stands at 8264 today can be tested
today or in coming sessions. At the same time, we are all likely to witness
sessions with low volumes and some good amount of volatility ingrained in it.
This may lead to some consolidation and some intermittent profit taking bouts.
However, given the overall structure of the Charts, reading of the lead
indicators and the F&O data, we can fairly conclude that the underlying
sentiment remains buoyant.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg.
No. INH000003341)
Member:
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
+91-98250-16331
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