Sunday, May 21, 2017

MARKET TREND FOR TUESDAY, MAY 09, 2017

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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