MARKET TREND FOR THURSDAY, MARCH 30, 2017
The benchmark NIFTY50 continued surge higher as it ended yet
another day with gains of 43 points or 0.47%. Likewise, the NIFTY has very
strongly established a range with the levels of 9000 as its bottom and the
levels of 9200 acting as its immediate short term top. Today, we expect a
modestly positive start once again. Also, we enter into expiry of the currently
derivative series and undoubtedly, we will see the rollovers dominating the
activities in the session. We do not expect any runaway rise beyond 9200 levels
but at the same time, we also expect volatile oscillation of the NIFTY in the
defined range while we move past rollovers.
The levels of 9160 and 9215 will act as immediate resistance
while supports will come in at 9090 and 9045 levels.
The Relative Strength Index – RSI on the Daily Charts is
64.6571 and it remains neutral. The Daily MACD is bearish while trading below
its signal line but it has flattened its trajectory. A rising window –
gap has occurred on Candles and this usually implies continuation of uptrend.
The pattern analysis clearly establishes the 9000-9200 range
as a fresh congestion zone for the NIFTY. This zone has been created after the
NIFTY posted a breakout and tested 9200+ levels and then showing a classical
throwback. While the throwback occurred, the NIFTY has returned very near to
the same place from where it had broken out. Now, these levels will act as a
major pattern support for the Markets.
Overall, there are no second thoughts that the underlying
sentiment is buoyant. There is also no doubt that in coming days we will move
past 9200 mark as well. But for today, we cannot rule out volatility creeping
into the Markets as we enter the expiry of the current derivative series. Fresh
upmoves shall occur only after NIFTY moves past 9200-mark but until that
happens we will see consolidation in defined range with very limited downsides.
Cautious optimism is advised for today.
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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