MARKET TREND FOR THURSDAY, APRIL 27, 2017

MARKET TREND FOR THURSDAY, APRIL 27, 2017

In our previous note, we had mentioned high probability of volatility creeping in the Indian Equity Markets and precisely in line with the analysis, the benchmark NIFTY50 oscillated wildly in 60-odd points range on either side before ending the day with gains of 45.25 points or 0.49%. On Thursday, we expect a quiet start to the Markets and volatility is expected to rule the roost as we enter the expiry of the currently derivative series. The previous day high of 9367 has perhaps marked itself as intense resistance levels for the Markets. We expect wild profit taking bouts from each higher levels now on while the NIFTY starts again to consolidate.

The levels of 9367 9390 will act as immediate resistance levels for the day. Supports will come in much lower at 9280 and 9255 levels.

The Relative Strength Index – RSI on the Daily Chart is 69.2024 and it has thrown up Bearish Divergence as RSI has failed to mark a fresh 14-period high while the NIFTY has done so. The Daily MACD has reported a positive crossover. No significant formations are observed on NIFTY.

Going by the pattern analysis, after spending couple of days in a corrective downward sloping channel, the NIFTY broke out on the upside three days in the direction of the original trend. At currently levels, it has become nearly overbought and the lead indicators show some evident signs of fatigue.

All and all, by breakout out from the minor downward sloping corrective channel in the direction of the original trend, the NIFTY has kept its primary uptrend intact. However, the evident fatigue on the lead indicators and the current overstretched structure on the Charts may cause NIFTY to consolidate again. Given the expiry day, volatile oscillations on either side can be expected. Very cautious approach is advised as profit taking bouts from higher levels cannot be ruled out.

Milan Vaishnav, CMT 

Technical Analyst 

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR WEDNESDAY, APRIL 26, 2017

MARKET TREND FOR WEDNESDAY, APRIL 26, 2017

Domestic Equity Markets had yet another buoyant session as the benchmark NIFTY50 ended the day with decent gains of 88.65 points or 0.96%. As evident from the Charts, NIFTY has broken out from the corrective channel that it had formed while closing at its lifetime highs. At this juncture, we wish to draw attention to few important factors. Though we may see a positive start to the Markets on Wednesday, this is the time that we may obviously not sell the Markets given the very strong primary uptrend but this is certainly the time when we have to now focus and lay our utmost emphasis on protecting profits. The developments in the US given the proposed tax breaks are likely to instill volatility in the equity markets in general over coming days.

The 9315 and 9345 levels are likely to act as immediate resistance while supports come in much lower at 9250 and 9175 levels.

The Relative Strength Index – RSI on the Daily Chart is 66.6009 and throws up Bearish Divergence against the price showing tiredness in the Markets. The MACD is still bearish while trading below its signal line. On Candles, a rising window (a gap) occurred. Though this is bullish, it may not realize its full potential given the tiredness of the lead indicators.

The pattern analysis shows very clearly that the NIFTY has broken out of a small corrective channel which was formed within a primary uptrend. The breakout has expectedly occurred in the direction of the major trend. There are chances that the Markets consolidate and fill up the gap it has created before moving upwards.

All and all, with the primary trend remaining intact, we very explicitly recommend not to throw caution into the air. The tax breaks proposal in the US is likely to instill volatility in the global markets and cause some likely spikes in the US Bond Yields. Also, the lead indicators on the current charts show some tiredness and therefore there are chances we may see some volatility ingrained in our markets as well. Being the penultimate day of expiry, the session is also likely to remain dominated with rollover centric activities. Cautious approach is advised for the day.

Milan Vaishnav, CMT 

Technical Analyst 

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR TUESDAY, APRIL 25, 2017

MARKET TREND FOR TUESDAY, APRIL 25, 2017

The Markets witnessed a robust up move fuelled by global positivity instilled by first round of French election which is set to see a Pro-EU leader likely to take reins. After a positive opening, the benchmark NIFTY50 ended the day with gains of 98.55 points or 1.08%. On Tuesday, we are set to see a flat to modestly positive opening. The NIFTY has attempted to break out of a small corrective channel that it has formed and it is likely that it continues to proceed towards 9300-mark. The current supports of 9070-9100 have been reinforced once again.

The levels of 9245 and 9290 will act as resistance levels for the day. The supports will come in at 9175 and 9130 levels.

The Relative Strength Index – RSI on the Daily Charts is 60.5365 and it remains neutral showing no divergences on either side. The Daily MACD is still bearish while trading below its signal line. However, its trajectory is flattened. A Bullish Belthold candle appeared. This candle is all the more important as it occurred near a potential support and therefore this is reinforced the current support levels for the immediate short term.

While having a look at pattern analysis, a small corrective channel had emerged on Daily Chart post marking of recent highs by the Markets. Markets witnessed classical consolidation while remaining in this corrective channel on lower volumes while it consolidated. It has attempted to break out on the upside again and it would be crucially important to see if it continues with the up move.

All and all, a breakout has occurred from the small corrective channel that was formed by NIFTY within a primary up trend. It is very likely that this upward breakout from a corrective channel will get confirmed tomorrow by forming a higher top and higher bottom. However, until fresh highs are formed by the Markets, we recommend protecting profits on existing positions. Fresh purchases may be made by effectively rotating the sectors as sectoral outperformance will continue.

Milan Vaishnav, CMT 

Technical Analyst 

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR MONDAY, APRIL 24, 2017

MARKET TREND FOR MONDAY, APRIL 24, 2017

The Friday’s session saw the opening buoyancy fizzling out as the benchmark NIFTY50 came off from its opening highs and ended yet another day with a modest lows after pulling back modestly from the lows of the day. On Monday, we expect the NIFTY to continue to remain in the corrective channel and spend some more time in this channel amidst global uncertainties but the lows of 9050-9075 that we witnessed shall lend strong support to the Markets. A modestly negative opening to the Markets is expected but NIFTY but overall the session is expected to remain stable.

The levels of 9150 and 9195 will continue to pose resistance at higher levels. The levels of 9075 and 9040 are expected to lend supports.

The Relative Strength Index—RSI on the Daily Chart is 51.4336 and remains neutral. The Daily MACD is bearish trading below its signal line but it has started to flatten its trajectory. No significant formations are observed on Candles.

The NIFTY April futures went on to shed over 8.84 lakh shares or 4.53% in Open Interest. The May futures added over 5.82 lakh shares or 19.53% in Open Interest.

The pattern analysis shows the NIFTY trading in a minor falling channel post marking its recent highs. This is a typical corrective channel formed within a primary uptrend. The other evidence of the consolidation taking place is lower volumes that are observed while this corrective channel was formed.

As mentioned often in our previous notes, though minor corrective activities will continue to weigh on our Markets and so will global uncertainties, we reiterate that the primary uptrend remains absolutely intact. Even macro factors like US Bond Yields touching lows from its highs will spell out favorably inflow picture for the emerging markets. While continuing to keep overall exposure modest, positively cautious approach is advised for the day.

Milan Vaishnav, CMT 

Technical Analyst 

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

WEEKLY MARKET OUTLOOK FOR APRIL 24 THRU APRIL 28, 2017

WEEKLY MARKET OUTLOOK FOR APRIL 24 THRU APRIL 28, 2017

Our previous Weekly note mentioned the benchmark NIFTY50 to head nowhere and remain in a broad range. In line with the analysis, the NIFTY50 ended the week flat with modest loss of 31.40 points or 0.34% on weekly basis. We had also expected REALTY sector  to handsomely out perform. The CNX REALTY Index ended the week with 10% weekly gains. In the coming week, we continue to expect the NIFTY50 to consolidate in a broad range and also expect the 8970-9000 zone to act as a very crucial and strong support.

The levels of 9185 and 9270 will act as resistance over coming week. The supports are expected in the zones of 9065 and 8970 levels.

The Relative Strength Index on the Weekly Chart is 65.4629 and it remains neutral showing no divergences on either side. The Weekly MACD stays bullish while trading above its signal line. Small candle with a spinning top – a small real body—dipicts indecisiveness on part of participants.

The pattern analysis show deliberation on part of NIFTY post its breakout from 8970-9000 zones. Post breaking out from those levels, the overbought nature of the Markets at that time did now allow for a runaway rise. Since then, the NIFTY has been consolidating on lower-than-average volumes. However, the breakout above the zones of 8970-9000 mark remain absolutely intact and these levels will act as a very strong support in case of the throwback happening.

Overall, we will continue to see the Markets showing tentative mood over coming days. We might see lack of explicit triggers and lack of conviction due to some portion of global uncertainties, but we reiterate that the primary trend remains intact. We advice investors to continue to utilize this classic consolidation period to rotate sectors effectively and pick quality stocks.

A study of Relative Rotation Graphs – RRG show relative outperformance from REALTY and select ENERGY stocks is likely to continue. In any upward swings in NIFTY, we will see participation coming from MIDCAP universe. SMALL CAP universe will also host pockets of outperformance. We will see PHARMA attempting to consolidate its relative outperformance. No significant outperformance will be expected from AUTO and PSUBANKS. METALS will continue to lag while BANKNIFTY and NIFTYJR will see some slowing down in momentum. Select Financial Services stocks are expected to relatively outperform.

 Important Note: RRG™ charts show you the relative strength and momentum for a group of stocks. In the above Chart, they show relative performance as against NIFTY Index and should not be used directly as buy or sell signals.

(Milan Vaishnav, CMT, is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)

Milan Vaishnav, CMT

Technical Analyst

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR FRIDAY, APRIL 21, 2017

MARKET TREND FOR FRIDAY, APRIL 21, 2017

Indian equities saw a relatively stable session as the benchmark NIFTY50 ended the day with modest gains of 32.90 points or 0.36%. In our previous note, we had expected the NIFTY to trade with upward bias and it did post some modest gains that occurred on back of short covering from lower levels. On Friday, we expect a stable to mildly positive start to the Markets and the NIFTY is expected to remain within the channel that it has formed post its recent highs. No significant movement on either side is expected but we expect some volatility to remain ingrained while the NIFTY aims to continue with its up move.

The levels of 9150 and 9185 will act as resistance levels while supports are expected to come in at 9110 and 9075.

The Relative Strength Index – RSI on the Daily Chart 53.4069 and it remains neutral showing no divergences against the price. The Daly MACD still remains bearish trading below its signal line. No significant formation is seen on Candles.

The NIFTY April futures saw shedding of 3.90 lakh shares or 1.96% in Open Interest. This makes it evident that the up move in NIFTY has occurred on account of short covering from lower levels.

The pattern analysis shows NIFTY forming a small falling channel within a uptrend as part of its corrective activity. So long, the NIFTY has managed to stay within this channel and it is likely to remain so over coming days.

All and all, the lead indicators on the Daily Charts show mild inclinations of resumption of up moves in NIFTY. At most, the lower support line of the Channel is likely to continue to act as supports. Though we expect some volatility to remain in grained in the session, we expect the Markets to remain stable with upward bias. We reiterate that no signs of reversal of trend have emerged and therefore this consolidation and corrective activity should be used for making quality purchases.

Milan Vaishnav, CMT 

Technical Analyst 

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR THURSDAY, APRIL 20, 2017

MARKET TREND FOR THURSDAY, APRIL 20, 2017

We had mentioned in our previous note that though the corrective inclinations will persist in the Markets, we will see NIFTY attempting to find base at current levels. In line with these projections, the benchmark NIFTY50 spent the entire session in a much capped range and ended the day on a flat note losing nominal 1.65 points or 0.02%. On Thursday, we expect a quiet start to the Markets and the session is expected to remain range bound with upward bias and limited downsides. Minor corrective activities may persist and some amount of volatility cannot be ruled out.

The levels of 9145 and 9190 will act as resistance levels for the day whereas the supports will come in at 9070 and 9045 levels.

The Relative Strength Index – RSI on the Daily Chart is 49.9565 and it is bearish as it marked its lowest value in last 14-days. However, it does not show any divergence s against the price. The Daily MACD is bearish while trading below it signals line. No significant formations are observed on candle. A candle resembling a hammer is observed but it is not a classic hammer as the lower shadow is not long enough.

The NIFTY APR shed 71,250 shares in Open Interest. This figure is too small to indicate and change in underlying sentiment.

The pattern analysis shows that post marking highs at 9273, the NIFTY has formed a small corrective downward sloping channel. This is a case of classical consolidation as this formation has occurred on much lower than average volumes.

All and all, corrective inclinations may persist in the Markets and we may also see trades on lower-than-average volumes. With some more consolidation on cards, we will see very specific pockets of sectors performing and very selective approach of the participants is likely. With no change in the primary direction of the Markets, we recommend selective approach to the Markets while keeping overall exposure moderate.

Milan Vaishnav, CMT 

Technical Analyst 

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR WEDNESDAY, APRIL 19, 2017

MARKET TREND FOR WEDNESDAY, APRIL 19, 2017

Indian equities had a thoroughly volatile session as after better than expected start and outperforming the Asian peers in the morning, the benchmark NIFTY50 came off nearly 112-odd points from the high point of the day. We expect negativity to persist and we can have subdued opening today. However, the NIFTY50 may attempt to find base around these levels and we may see some improvement and stability returning back. However, no runway rise in the NIFTY can be expected as well.

The levels of 9145 and 9180 will act as resistance levels for today. The supports will come in at 9080 and 9045 levels.

The Relative Strength Index – RSI on the Daily Chart is 50.1295 and it is Bearish as it has reached its lowest value over 14-periods. A Bearish Divergence is observed as the RSI has set a fresh 14-period low while NIFTY has not. The Daily MACD is bearish as it trades below its signal line.

The NIFTY APR futures have shed over 2.94 lakh shares or 1.45% in Open Interest. The reduction in OI has indicated that we saw some long unwinding from higher levels.

The pattern analysis depicts that a intermediate top has been formed 9250-9275 zones and fresh up moves shall occur only after the NIFTY50 moves past those levels. Until that happens broad range oscillations will dominate the trading sessions.

Overall, with the Markets trading above 8970-9010 zones, the broad uptrend remains intact. There are no signs of any reversal from the primary trend. However, given the short term indicators read along with F&O data, such corrective tendencies of the Markets may persist for some more time. We reiterate our advice to shift sectors effectively and take advantage of such corrective actions to reorganize portfolios and prepare for resumption of 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

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR TUESDAY, APRIL 18, 2017

MARKET TREND FOR TUESDAY, APRIL 18, 2017

Markets headed nowhere yesterday as the NIFTY oscillated in a much capped range after coming off from its early lows and ended the day on a flat note shedding 11.50 points or 0.13%. Much on the projected lines, such capped consolidation is expected to continue today as well. We expect a flat to modestly positive opening and once again see the benchmark NIFTY50 attempting to find base. There are no triggers for any runway rise in the Markets and in the same manner; there are no signs of any reversal of the primary trend. Plainly speaking, NIFTY currently trades in a no-trade zone with inherent trend remaining intact.

The levels of 9175 and 9220 shall act as immediate resistance levels. The zones of 9105 and 9065 shall act as immediate supports.

The Relative Strength Index – RSI on the Daily Chart is continues to remain bearish as it reached the lowest value in last 14-days. A Bearish Divergence has also occurred as the RSI has set a fresh 14-period low while NIFTY has not yet. The Daily MACD stays bearish as it trades below its signal line. A Spinning Top that has occurred on the Candle shows indecisiveness on part of Market participants.

With NIFTY APR Futures shedding just over 1.11 lakh shares or 0.55% in  Open Interest, it does not throw any meaningful indications of any change in underlying sentiments.

All and all, it is very much evident that the Markets are undergoing a classical consolidation. Such corrective activities often occur on low volumes and dips are generally bought into. We continue to reiterate that there is no evidence as yet of any change in the structural trend. All corrective downsides should be utilized to make quality purchases.

Milan Vaishnav, CMT 

Technical Analyst 

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR MONDAY, APRIL 17, 2017

MARKET TREND FOR MONDAY, APRIL 17, 2017

The Markets on Thursday had ended on a weaker note as the benchmark NIFTY50 lost 52.65 points or 0.57% as the corrective activities continued on lower-than-average volumes. The Markets shall open on Monday after a long weekend and are we expect to see a muted start to the session. Though the corrective activities are likely to continue we expect the Markets to try and find some foot and base. We expect the downsides to get arrested the Markets may attempt to find some bottoms at current levels. At present the NIFTY rests at its short term support of 20-DMA.

Today, the levels of 9180 and 9265 shall act as immediate resistance levels while the supports will come in at 9105 and 9075 zones.

The Relative Strength Index – RSI on the Daily Charts is 54.9244 and it has reached its lowest value in last 14-days which is bearish. A Bearish Divergence is observed as RSI has set a fresh 14-period low while NIFTY has not. The Daily MACD stays bearish as it trades below its signal line.

On the derivatives front, the NIFTY APR futures have shed further 5.24 lakh shares or 2.51% in Open Interest.

The pattern analysis on the Daily Charts suggests the levels of 9273 as its immediate top of a fresh congestion area that it has formed. Currently, the Markets rest at the bottom of this fresh congestion area. The test would be to see if the NIFTY attempts to find some base at current levels.

All and all, it is pretty much the fact that the Markets lack triggers that it requires to resume the up move. At the same time, it is very much evident that there are no signs of any reversal of primary trend and the broad uptrend remains very much intact. The current geopolitical tensions are likely to keep the Markets under check but the fact that the current corrective action has come with much lower-than-average volumes is a positive sign. Overall, range bound session is expected and a cautious outlook may be adopted. Preservation of cash is advised and exposures should be kept at moderate levels.

Milan Vaishnav, CMT 

Technical Analyst 

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR MONDAY, APRIL 17, 2017

MARKET TREND FOR MONDAY, APRIL 17, 2017

The Markets on Thursday had ended on a weaker note as the benchmark NIFTY50 lost 52.65 points or 0.57% as the corrective activities continued on lower-than-average volumes. The Markets shall open on Monday after a long weekend and are we expect to see a muted start to the session. Though the corrective activities are likely to continue we expect the Markets to try and find some foot and base. We expect the downsides to get arrested the Markets may attempt to find some bottoms at current levels. At present the NIFTY rests at its short term support of 20-DMA.

Today, the levels of 9180 and 9265 shall act as immediate resistance levels while the supports will come in at 9105 and 9075 zones.

The Relative Strength Index – RSI on the Daily Charts is 54.9244 and it has reached its lowest value in last 14-days which is bearish. A Bearish Divergence is observed as RSI has set a fresh 14-period low while NIFTY has not. The Daily MACD stays bearish as it trades below its signal line.

On the derivatives front, the NIFTY APR futures have shed further 5.24 lakh shares or 2.51% in Open Interest.

The pattern analysis on the Daily Charts suggests the levels of 9273 as its immediate top of a fresh congestion area that it has formed. Currently, the Markets rest at the bottom of this fresh congestion area. The test would be to see if the NIFTY attempts to find some base at current levels.

All and all, it is pretty much the fact that the Markets lack triggers that it requires to resume the up move. At the same time, it is very much evident that there are no signs of any reversal of primary trend and the broad uptrend remains very much intact. The current geopolitical tensions are likely to keep the Markets under check but the fact that the current corrective action has come with much lower-than-average volumes is a positive sign. Overall, range bound session is expected and a cautious outlook may be adopted. Preservation of cash is advised and exposures should be kept at moderate levels.

Milan Vaishnav, CMT 

Technical Analyst 

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR THURSDAY, APRIL 13, 2017

MARKET TREND FOR THURSDAY, APRIL 13, 2017

We had mentioned in our yesterday’s note that some amount of volatility is expected to creep in at higher levels. In line with the projections, the Equity Markets had a volatile session yesterday. Though the benchmark NIFTY50 came off from its intraday lows, it still posted minor losses of 33.55 points or 0.36%. The NIFTY has created a fresh congestion area over couple of days. We expect a modestly negative opening but the zones of 9150-9170 will continue to provide bottom and provide inherent strength on the Charts. With Friday being holiday, today is the last trading day of the Week.

The levels of 9250 and 9295 will act as immediate resistance levels while supports will come in 9150 and 9125 zones.

The Relative Strength Index –RSI on the Daily Chart is 60.8153 and it remains neutral. The Daily MACD stays bearish trading below its signal line. No significant formations are observed on Candles.

On the derivatives front, the NIFTY APR Futures have 93,525 shares or 0.44% in Open Interest. This figure is small enough not to suggest any change in underlying sentiment.

The pattern analysis suggests creation of fresh congestion area over last couple of days. The NIFTY shows strong multiple bar support in the 9150-9170 zones. This zone is created after the occurrence of the breakout by NIFTY and its recent retracement from its immediate highs.

Overall, the current structure of the Charts show possibilities of the NIFTY remaining in a capped range with the zones of 9150-9170 acting as support. We reiterate that with the secular trend remaining intact, all such dips should be continued to be utilized for making fresh purchase. Given the possibilities of volatility remaining ingrained in the markets, exposures should be kept moderate.

Milan Vaishnav, CMT 

Technical Analyst 

(Research Analyst, SEBI Reg. No. INH000003341)

Member: 

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

MARKET TREND FOR WEDNESDAY, APRIL 12, 2017

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

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331 

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com