MARKET TREND FOR FRIDAY, MARCH 31, 2017
Tough the Markets witnessed some volatility in the last hour
of the trade, the session remained relatively quiet and the benchmark NIFTY50
traded in a 30-odd points range before ending yet another day with gains with
Closing at its fresh highs. Today, we expect this momentum to continue in the
first half of the session. We expect a positive start to the Markets but going
ahead, we also expect some resistance coming in near 9200-mark and can expect
some minor profit taking from those levels. However, this will remain once
again limited to a capped oscillation in a defined range.
The levels of 9195 and 9220 will act as immediate resistance
levels for the Markets. Supports will come in at 9135 and 9100 levels.
The Relative Strength Index – RSI on the Daily Chart is
66.5104 and it shows bearish divergence against the price as the NIFTY has set
a fresh 14-period high while RSI has not. The Daily MACD still trades below its
signal line and it is bearish but it has flattened its trajectory. No major
formations are observed on candles.
The pattern analysis show completion of a throwback that had
occurred post breakout from the 9000-mark. The prices returned very near to
those levels and then pullback again after taking support from the area from
where it broke out. This validates and completes the entire formation. Markets
now have attempted to form a breakout at Close levels but still have to move
past its intraday highs.
Overall, we fairly expect the uptrend to continue but the
levels near 9200-mark needs to be closely monitored. There are fair chances
that the Markets may witness some minor corrective pressure at 9200-9230 zones
as suggested by the F&O data. Also the lead indicators will show some more
exhaustion at higher levels. It is recommended to use all further up moves to
protect profits on existing holdings while effectively churning sectors for
better relative performance.
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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