Sunday, April 23, 2017

MARKET TREND FOR MONDAY, APRIL 17, 2017

MARKET TREND FOR MONDAY, APRIL 17, 2017
The Markets on Thursday had ended on a weaker note as the benchmark NIFTY50 lost 52.65 points or 0.57% as the corrective activities continued on lower-than-average volumes. The Markets shall open on Monday after a long weekend and are we expect to see a muted start to the session. Though the corrective activities are likely to continue we expect the Markets to try and find some foot and base. We expect the downsides to get arrested the Markets may attempt to find some bottoms at current levels. At present the NIFTY rests at its short term support of 20-DMA.

Today, the levels of 9180 and 9265 shall act as immediate resistance levels while the supports will come in at 9105 and 9075 zones.

The Relative Strength Index – RSI on the Daily Charts is 54.9244 and it has reached its lowest value in last 14-days which is bearish. A Bearish Divergence is observed as RSI has set a fresh 14-period low while NIFTY has not. The Daily MACD stays bearish as it trades below its signal line.

On the derivatives front, the NIFTY APR futures have shed further 5.24 lakh shares or 2.51% in Open Interest.

The pattern analysis on the Daily Charts suggests the levels of 9273 as its immediate top of a fresh congestion area that it has formed. Currently, the Markets rest at the bottom of this fresh congestion area. The test would be to see if the NIFTY attempts to find some base at current levels.

All and all, it is pretty much the fact that the Markets lack triggers that it requires to resume the up move. At the same time, it is very much evident that there are no signs of any reversal of primary trend and the broad uptrend remains very much intact. The current geopolitical tensions are likely to keep the Markets under check but the fact that the current corrective action has come with much lower-than-average volumes is a positive sign. Overall, range bound session is expected and a cautious outlook may be adopted. Preservation of cash is advised and exposures should be kept at moderate levels.


Milan Vaishnav, CMT 
Technical Analyst 
(Research Analyst, SEBI Reg. No. INH000003341)

Member
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA

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