MARKET TREND FOR TUESDAY, APRIL 11, 2017
The Indian Equity Markets on Monday continued to consolidate
as expected and remained in a defined range while ending the day with minor
losses of 16.85 points or 0.18%. Today, we expect the Markets to open on a
quiet note and not do not see the benchmark NIFTY50 making any major headway on
either side. Speaking broadly, consolidation will continue and we will continue
to see the Markets trading in a capped range with limited downsides.
The levels of 9230 and 9295 will act as immediate resistance
levels while supports are expected to come in at 9150 and 9115 zones.
The Relative Strength Index – RSI on the Daily Chart is
60.8584 and it remains neutral. The Daily MACD stays bearish while trading
below its signal line. No significant formations are observed on Candles.
The NIFTY APR Futures have gone on to shed yet another 3.42
lakh shares or 1.63% in Open Interest. This is enough evidence that minor long
unwinding continued in yesterday session as well.
The pattern analysis shows the Markets in a rising channel
from the long term support and the overall trend continues to remain intact.
The NIFTY had got overbought post the recent breakout and what Markets are
showing is classic consolidation in form of minor corrective activities.
As mentioned often, though we expect some minor corrective
activities and broad consolidation to continue, we reiterate that there are no
signs on any structural change of trend on the Charts. Therefore, we recommend
continuing to make modest purchases with each such corrective action. Stock
specific approach 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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