MARKET TREND FOR WEDNESDAY, MAY 03, 2017
We had mentioned in our Tuesday’s note that with the signs
of consolidation galore, the Markets are expected to trade volatile in a
defined range and continue to consolidate. In line with this analysis, the benchmark
NIFTY50 oscillated on either side after a good opening and ended the day with
minor gains of 9.75 points or 0.10%. The Markets have put on display some clear
signs of impending consolidation. On Wednesday, we might see a quiet opening
once again and we see no triggers, technical of otherwise that can cause any
runway rise in the Markets.
With the levels of 9350 and 9380 acting as immediate
resistance levels, supports will come in at 9260 and 9210 zones.
The Relative Strength Index on the Daily Chart is 63.9446
and it remains neutral showing no divergences. The Daily MACD stays bullish
while trading above its signal line. On Candles, a candle with long lower
shadow has occurred which closely resembles to a hanging man formation. Though
this is not a classical hanging man the way it should be, but it still holds
enough potential to push the Markets into some more consolidation.
The pattern analysis has clearly established the 9350-9395
zones as the immediate resistance levels for the Markets. This area hosts some
multiple pattern resistances for the Markets and it would be extremely critical
and important for the Markets to move beyond these levels for a fresh up move.
All and all, we reiterate that there are no signs of
reversal of the current primary uptrend. Despite this, there are ample signs
that suggest the NIFTY will remain under consolidation for some more time.
There are increased chances of volatility creeping in and we expect each up
move to meet with intermittent profit taking bouts. We recommend keeping
overall exposure on moderate levels until the Markets consolidates and prepares
itself for another up move.
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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