MARKET TREND FOR MONDAY, APRIL 03, 2017
The Markets on Friday closed unchanged as the NIFTY ended
flat after coming off from its intraday highs that it had scaled in the later
part of the session. Some signs of fatigue are evident once again. Today, we
expect the benchmark NIFTY50 to open on a flat note and look for directions.
Though the intraday trajectory will remain critical, the levels of 9200-9225
will remain critical levels to monitor. The Markets may continue to show strong
undercurrents but at the same time, the much-evident fatigue will keep the
overall momentum under check.
The levels of 9200 and 9225 will act as immediate resistance
levels while the supports are expected at 9130 and 9070 zones.
The Relative Strength Index – RSI on the Daily Chart is
66.5104. A bearish divergence is seen as the NIFTY reported a fresh 14-period
high while the NIFTY did not. The Daily MACD is bearish while trading below its
signal line. No major formations are
reported on Candles.
The NIFTY April futures have shed over 1.91 lakh shares or
0.83% in Open Interest.
The pattern analysis shows completion of throwback that
occurred. This throwback caused the NIFTY to return very near to the same
levels of 9000 from where it broke out. It has also now reversed its trend and
resumed its up move marking the end of the throwback that occurred post the
first breakout.
All and all, though the buoyancy may remain some amount of
consolidation is very much expected at higher levels. The lower-than-average
rollovers, the bearish divergence on the lead indicators and slightly
overstretched structure on the Chart point towards some fatigue in the Markets.
We recommend to very vigilantly protecting the profits on existing positions at
higher levels. Excessive exposures should be avoided and very stock specific
and selective approach should be maintained.
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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