MARKET TREND FOR TUESDAY, MAY 09, 2017
The benchmark NIFTY 50 ended the day with a minor uptick as
it gained 28.75 points or 0.31%. It has attempted to find a base at the
previous day’s low but it has also left enough signs to suggest that the
current consolidation phase is likely to exist for a longer time and no runaway
rise in the Markets is likely. However, the levels of 9250-9270 are likely to
act as support for the ongoing consolidation. On Tuesday, we are expected to
see a flat to modestly positive opening but the session is expected to remain
much in a defined range with the consolidation continuing on the charts.
The levels of 9350 and 9375 will continue to act as major
resistance levels for the Markets. The supports come in at 9270 and 9225 zones.
The Relative Strength Index – RSI on the Daily Chart is
60.1511 and it remains neutral showing no bullish or bearish divergences
against the price. Daily MACD, though completely flattened in its trajectory,
stays bullish while trading above its signal line. On Candles, a bullish
harami has occurred. This holds significance as it has occurred during an
uptrend and it has potential to keep the Markets under corrective tendencies
for some more time.
As per pattern analysis, the NIFTY has been moving sideways
after marking recent highs in the 9365-9370 zones. The Markets have not
corrected but it has consolidated in sideways trajectory and it is likely to
remain under consolidation for some more time.
All and all, given the current nature of consolidation, it
is evident that fresh sustainable up move shall occur only after the NIFTY
moves past 9370 levels and sustain above that. Until that happens, we will
continue to see the Markets under consolidation. Sessions will witness range
bound movement while the NIFTY will continue to remain vulnerable to profit
taking bouts. We continue to reiterate maintain selective approach to the
Markets while maintaining positive caution in the Markets.
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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