MARKET TREND FOR WEDNESDAY, APRIL 12, 2017
The Markets had much better-than-expected session as it
ended its three day losing streak while posting modest gains of 55.55 points or
0.61%. With this, the benchmark NIFTY50 has re-established its strong bottoms
of the congestion area it has formed. Today, we expect a muted to mildly
positive start to the Markets and we can fairly expect the NIFTY to 9300-mark
in coming sessions. It has formed 9150-9170 area as the bottom of the
congestion and we expect the Markets to maintain its buoyant undercurrents.
The levels of 9250 and 9325 will act as immediate resistance
levels while supports are expected to come in at 9170 and 9135 zones.
The Relative Strength Index – RSI on the Daily Charts is
67.9364 and is neutral showing no divergences against the price. The Daily MACD
remains bearish while trading below its signal line. An Engulfing Bullish
Candle has occurred. This is very significant as this has occurred after a
brief downtrend and this increases the chances of further up move.
The NIFTY April futures have added 3.32 lakh shares or 1.61%
in Open Interest. This signifies creation of fresh long positions in the
Markets.
The pattern analysis depicts formation of congestion area
post breakout and this lasted couple of days. After marking recent highs, the
NIFTY had consolidated for couple of days and then has gathered strength for a
fresh up move. This current formation has not only kept the secular uptrend
intact but has further strength by undergoing brief consolidation.
Overall, as mentioned, the secular uptrend remains intact.
There are bright chances that we may see further up moves and sector specific
out-performance will continue. Some volatility may be expected at higher levels
but creating shorts should be avoided. Profits may be guarded at higher levels
and picking up correct stocks and rotating sectors effectively is sure to
remain rewarding to the investors.
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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