MARKET TREND FOR TUESDAY, MARCH 21, 2017
The Indian Equities traded much on expected lines as the
Markets took a breather and showed some retracement from its highs. It ended
with a modest loss of 33.20 points or 0.36% in a range bound session after coming
off from the opening intraday highs. We expect the Markets on Tuesday to open
on a flat note and remain range bound with an upward bias. We expect range
bound consolidation with bullish intent. We also expect some volatility to
creep in but overall downsides will continue to remain limited.
Tuesday’s session will see 9150 and 9190 acting as the
immediate resistance levels while the supports will come in at 9085 and 9045
levels.
The Relative Strength Index – RSI on the Daily Chart is
72.3006 and it remains neutral showing no bullish or bearish divergences
against the price or any failure swings. The Daily MACD stays bullish while
trading above its signal line. No significant formations are observed on
Candles.
On the derivative front, the NIFTY March futures have added
over 6.81 lakh shares or 2.74% in Open Interest.
The pattern analysis shows some likely throwback after a
spectacular and strong breakout. The NIFTY has successfully achieved and
confirmed a breakout from its major Double Top pattern resistance. Post rise of
over 200-odd points from the point of breakout, it is taking some breather and
witnessing some healthy consolidation. This would be positive for the Markets
and will lend further strength that it will require to move higher in coming days.
All and all, it is also important to note that some fresh
shorts are also seen being built in to the system. The strong technical
indicators and the creation of shorts will continue to keep the downsides
limited. We reiterate to stick to the policy of selective stock picking and
continue to maintain positive outlook on the Markets. The overall exposures
should be kept highly selective while avoiding creation of any shorts in the
Markets as the undercurrent continues to remain strong with an upward bias.
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.