The Indian Equity Markets on Thursday continued to
consolidate and at the same time maintained it’s positive and buoyant undertone
as the benchmark NIFTY ended the session with a modest up tick of 26.55 points
or 0.32%. Today’s analysis remains more or less once again on similar lines and
we expect the upward move to continue. A stable opening is expected today and we
will see the NIFTY remaining in a capped range while maintaining a positive
bias. The intraday trajectory that the Markets form will remain important to
watch. The NIFTY is likely to test its 100-DMA which stands at 8443 today.
For today, the level of 8445 and 8470 will act as immediate
resistance level while supports will come in at 8380 and 8335 levels.
The Relative Strength Index – RSI on the Daily Chart is
66.7593 and it has formed a fresh 14-period high which is bullish. It does not
show any bullish or bearish divergence. The
Daily MACD is firmly bullish and trades comfortably above the signal line. On
the Candles, a white candle occurred. Though not big enough, but three
white candles occurred in three previous sessions. This raises the possibility
of the upward momentum continuing.
The NIFTY January futures further saw addition of over 12.90
lakh shares or 6.67% in Open Interest. This further reaffirms the strong
undercurrent in the Markets.
Pattern analysis also suggests strong possibilities of the
continuation of the up move. The NIFTY has now successfully broken out of the
broad trading range that it had formed in previous two months. While doing so,
it not only confirmed the immediate lows but also moved past and closed well
above the 200-DMA resistance which stands at 8293 and it is rising upwards. Any
throwback or consolidation that might occur over coming days will see the level
of 200-DMA extending a strong support at Close levels.
All and all, barring some possibilities of consolidation at
higher levels, we expect the up move to continue. Any correction, if any near
100-DMA levels may remain extremely range bound and in form of intermittent
bouts. Apart from this, the overall technical structure of the Chart, the
Pattern Analysis and further evidence from the lead indicators and the F&O
data point towards strong undercurrent and buoyancy. The CNXIT will remain in
focus as the bellwether TCS came out with better numbers and INFY coming out
with numbers today. Overall, a positive outlook is advised for today.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.