The Indian Equity Markets on Wednesday remained quite
directionless and while trading much on the expected lines, continued to consolidate
and trade in a much capped range. The benchmark NIFTY50 ended the day with
minor losses of 6.40 points or 0.06%. On Thursday, we expect the Markets to go
into on a steady not while also giving reactions to the ending of the FOMC
meet. In any case, the zones of 10150-10170 will continue to pose resistance. The
smaller intraday bands that are being witnessed in couple of past previous
trading sessions show the Markets lack of directional bias and also show that
the Markets are poised evenly and can go either way.
Thursday will see the levels of 10170 and 10230 playing out
as resistance levels. Supports
come in at 10090 and 9980 zones.
The Relative Strength Index – RSI on the Daily Chart is 64.8543
and stays neutral showing no divergences. The Daily MACD continues to remain
bullish.
The Markets continued to track the upper Bollinger band
while trading in the rising channel that the Markets have formed during last
couple of days.
Overall, with the Markets continuing to trade in very narrow
intraday bands, there are chances that we see sharp movements either side.
Also, with no directional bias over past couple of session, we strongly
recommend keeping over exposures to moderate levels. Shorting should be avoided
if there is a convincing breach of highs, short covering can occur. However,
until a directional bias is established, stock specific approach is advised.
Caution is advised for the day.
Milan Vaishnav, CMT, MSTA
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Member:
CMT Association (Formerly known as Market
Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA),
CANADA
Society of Technical Analysts (STA),
UK
+91- 70164-32277
/ +91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.