MARKET TREND FOR TUESDAY, APRIL 25, 2017
The Markets witnessed a robust up move fuelled by global
positivity instilled by first round of French election which is set to see a
Pro-EU leader likely to take reins. After a positive opening, the benchmark NIFTY50
ended the day with gains of 98.55 points or 1.08%. On Tuesday, we are set to
see a flat to modestly positive opening. The NIFTY has attempted to break out
of a small corrective channel that it has formed and it is likely that it
continues to proceed towards 9300-mark. The current supports of 9070-9100 have
been reinforced once again.
The levels of 9245 and 9290 will act as resistance levels
for the day. The supports will come in at 9175 and 9130 levels.
The Relative Strength Index – RSI on the Daily Charts is
60.5365 and it remains neutral showing no divergences on either side. The Daily
MACD is still bearish while trading below its signal line. However, its
trajectory is flattened. A Bullish Belthold candle appeared. This candle is all
the more important as it occurred near a potential support and therefore this
is reinforced the current support levels for the immediate short term.
While having a look at pattern analysis, a small corrective
channel had emerged on Daily Chart post marking of recent highs by the Markets.
Markets witnessed classical consolidation while remaining in this corrective
channel on lower volumes while it consolidated. It has attempted to break out
on the upside again and it would be crucially important to see if it continues with
the up move.
All and all, a breakout has occurred from the small
corrective channel that was formed by NIFTY within a primary up trend. It is
very likely that this upward breakout from a corrective channel will get
confirmed tomorrow by forming a higher top and higher bottom. However, until
fresh highs are formed by the Markets, we recommend protecting profits on
existing positions. Fresh purchases may be made by effectively rotating the
sectors as sectoral outperformance will continue.
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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