MARKET TREND FOR THURSDAY, APRIL 20, 2017
We had mentioned in our previous note that though the
corrective inclinations will persist in the Markets, we will see NIFTY
attempting to find base at current levels. In line with these projections, the benchmark
NIFTY50 spent the entire session in a much capped range and ended the day on a
flat note losing nominal 1.65 points or 0.02%. On Thursday, we expect a quiet
start to the Markets and the session is expected to remain range bound with
upward bias and limited downsides. Minor corrective activities may persist and
some amount of volatility cannot be ruled out.
The levels of 9145 and 9190 will act as resistance levels
for the day whereas the supports will come in at 9070 and 9045 levels.
The Relative Strength Index – RSI on the Daily Chart is
49.9565 and it is bearish as it marked its lowest value in last 14-days.
However, it does not show any divergence s against the price. The Daily MACD is
bearish while trading below it signals line. No significant formations are
observed on candle. A candle resembling a hammer is observed but it is not a
classic hammer as the lower shadow is not long enough.
The NIFTY APR shed 71,250 shares in Open Interest. This
figure is too small to indicate and change in underlying sentiment.
The pattern analysis shows that post marking highs at 9273,
the NIFTY has formed a small corrective downward sloping channel. This is a
case of classical consolidation as this formation has occurred on much lower
than average volumes.
All and all, corrective inclinations may persist in the
Markets and we may also see trades on lower-than-average volumes. With some
more consolidation on cards, we will see very specific pockets of sectors
performing and very selective approach of the participants is likely. With no
change in the primary direction of the Markets, we recommend selective approach
to the Markets while keeping overall exposure moderate.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.