MARKET TREND FOR WEDNESDAY,MARCH 01, 2017
Though the Markets remained yesterday in a falling
trajectory, the NIFTY saw range bound movements in a range bound manner and the
Markets continued to positively consolidate while it ended the day with a minor
loss of 17.10 points or 0.19%. The consolidation was evident and so was the
bullish undercurrent that the Markets had to put on display. Today, we expect a
positive start to the Markets. Though the levels of 8930-8950 will continue to
act as immediate resistance at Close levels, the bullish undertone will keep
the downsides limited. The better-than-expected GDP numbers that came out will
further fuel this strong underlying sentiment. Today as well, though the NIFTY
remaining in consolidation cannot be ruled out the downsides will remain
limited and all corrective activities are likely to get bought into.
For today, the levels of 8910 and 8950 will act as immediate
resistance levels. The supports will come in at 8835 and 8810 levels.
The Relative Strength Index – RSI on the Daily Chart is
66.5061 and it remains neutral as it shows no bullish or bearish divergence as
against the price or any failure swings. The Daily MACD is still bearish while
it trades below its signal line. However, it has flattened its trajectory. On
Candles, no significant formations were observed.
On the derivative front, the NIFTY March series have shed
just over 50,250 shares or 0.24% in Open Interest. This figure is small and
very insignificant to suggest any apparent change in underlying sentiment.
While having a look at pattern analysis, the NIFTY has
clearly marked the 8930-8950 zones as a Double Top at Close levels. At the same
time, it has shown very little retracements at Close levels and all the
consolidation and minor corrective activities have remained more in the form on
intraday oscillations. It is evident and clear that further upsides will occur
only after the NIFTY clears this Double Top resistance above the prescribed
levels.
All and all, a positive start is expected and a boost to the
already buoyant sentiments cannot be ruled out with the better-than-expected
GDP numbers. While this will certainly aid a positive expected start, the
levels of 8930-8950 will still continue to hold as immediate important pattern
resistance levels. The outperformance in Mid Caps is likely to continue and
also some sector specific out-performance cannot be ruled out. Overall, with
each corrective dip, stock specific purchases may be made in moderate quantities.
While maintaining enough cash until the Markets breach the prescribed pattern
resistance, 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
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