Sunday, April 23, 2017

MARKET TREND FOR FRIDAY, MARCH 31, 2017

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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