Thursday, April 27, 2017

MARKET TREND FOR THURSDAY, APRIL 27, 2017

MARKET TREND FOR THURSDAY, APRIL 27, 2017
In our previous note, we had mentioned high probability of volatility creeping in the Indian Equity Markets and precisely in line with the analysis, the benchmark NIFTY50 oscillated wildly in 60-odd points range on either side before ending the day with gains of 45.25 points or 0.49%. On Thursday, we expect a quiet start to the Markets and volatility is expected to rule the roost as we enter the expiry of the currently derivative series. The previous day high of 9367 has perhaps marked itself as intense resistance levels for the Markets. We expect wild profit taking bouts from each higher levels now on while the NIFTY starts again to consolidate.

The levels of 9367 9390 will act as immediate resistance levels for the day. Supports will come in much lower at 9280 and 9255 levels.

The Relative Strength Index – RSI on the Daily Chart is 69.2024 and it has thrown up Bearish Divergence as RSI has failed to mark a fresh 14-period high while the NIFTY has done so. The Daily MACD has reported a positive crossover. No significant formations are observed on NIFTY.

Going by the pattern analysis, after spending couple of days in a corrective downward sloping channel, the NIFTY broke out on the upside three days in the direction of the original trend. At currently levels, it has become nearly overbought and the lead indicators show some evident signs of fatigue.

All and all, by breakout out from the minor downward sloping corrective channel in the direction of the original trend, the NIFTY has kept its primary uptrend intact. However, the evident fatigue on the lead indicators and the current overstretched structure on the Charts may cause NIFTY to consolidate again. Given the expiry day, volatile oscillations on either side can be expected. Very cautious approach is advised as profit taking bouts from higher levels cannot be ruled out.

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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