MARKET TREND FOR MONDAY, APRIL 10, 2017
Very much on the projected lines, the overstretched NIFTY50
saw some correction setting in and lost some weight in the last hour of the
trade while ending the day with loss of 63.65 points or 0.69%. We have a short
week ahead as Friday, 14th April is a trading holiday. Today, we
expect a muted start to the Markets and we may see the Markets continuing to
trade in a capped range. Some more amount of consolidation is likely but the
downsides are going to remain very much limited.
The levels of 9250 and 9315 will act as immediate resistance
levels while supports will come in at 9150 and 9110 zones.
The Relative Strength Index – RSI on the Daily Chart is
62.9195 and remains neutral. The Daily MACD has reported a negative crossover
and it is now bearish trading below its signal line. No significant formation
is observed on Candles.
The NIFTY April futures have further shed over 3.178 lakh
shares or 1.49% in Open Interest. This shows some more likelihood of long positions
getting reduced over coming days and some unwinding may continue.
The pattern analysis shows the Markets attempting a fresh
breakout on the Weekly Charts. However, on the Daily Charts, some consolidation
was imminent as the indicators and structure of the Markets was overstretched.
It would be, in fact, healthy for the Markets to have a correction within a
defined range, consolidate and move on. This will lend more strength to the
Markets over coming days.
All and all, we may see the Markets in a defined range today
as well over coming days. The Week ahead remains short with Friday being a
holiday and we feel some corrective activities within a defined range may
continue. At this juncture, we reiterate that the overall trend remains intact
and at no point the Markets have indicated any signs of any reversal of the
primary trend. Stock specific an selective approach is advised for the day.
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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