MARKET TREND FOR WEDNESDAY, MARCH 08, 2017
The Indian Equity Markets headed nowhere as the benchmark
NIFTY50 consolidated very much on expected lines as it ended the day posting
minor loss of 16.55 points or 0.18%. The NIFTY has shown no retracement after
approaching a Double Top resistance levels and has continued to display good
amount of underlying strength. Today, we expect a modest start to the Markets
and also expect range bound consolidation to continue. We will see NIFTY
oscillating in a defined range and the levels of 8940-8960 acting as major
pattern area resistance at Close levels. Though NIFTY will continue attempt its
march towards 9000-mark and higher, this is not likely to remain without
intermittent profit taking bouts.
For today, 8960 and 9035 will act as likely resistance
levels for the Markets. The supports come in at 8910 and 8815 levels.
The Relative Strength Index – RSI on the Daily Chart is
66.5433 and it does not show any failure swings and any bullish or bearish
divergence. The Daily MACD is bearish as it trades below its signal line. On
candles, no significant formations are seen.
The NIFTY March futures have added over 2.27 lakh shares or 1.05%
in Open Interest. This continues to portray underlying strength in the Markets.
Coming to pattern analysis, the NIFTY has so far continued
to resist the Double Top resistance area of the 8940-8950 levels and has
continued to do so until now. As mentioned often in our previous notes, any
significant up move shall occur only after the NIFTY moves past these levels
and closes above it. Until that happens, we will see sessions remaining
dominated with range bound movements coupled with some volatility.
All and all, the NIFTY has formed a broad congestion zone
and it is likely to continue to consolidate in that zone. This is likely to
occur in a form of a range bound movement. At the same time, since the NIFTY is
yet to move past the 8950-mark at Close levels, NIFTY will continue to remain
vulnerable to profit taking bouts at higher levels. The lead indicators do not
indicate any significant weakness coming in and downsides, if any, will remain
limited. While continuing to pick select stocks with each lower level, positive
caution 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.