MARKET OUTLOOK FOR FRIDAY, MAY 12, 2017
In our previous note, we stated that though the NIFTY has
attempted to achieve a breakout, we remained apprehensive about the Markets
continuing with the up move. The Indian Markets looked evidently tired and some
profit taking took place at higher levels as the benchmark NIFTY50 came off
from its intraday highs end the day with modest gains of 15.10 points or 0.16%.
On Friday as well, though we do not see any downright correction, we certainly
expect the Markets to show signs of some tiredness while it attempts to scale
higher levels. Some intermittent bouts of profit taking just cannot be ruled
out.
The levels of 9440 and 9465 will act as immediate resistance
levels while supports come in at 9380 and 9350 zones.
The Relative Strength Index on the Daily Chart is 67.8852.
It shows clear Bearish Divergence as the NIFTY50 marked its fresh 14-day high
but RSI did not. The MACD stays bullish while trading above its signal line. No
significant formations were seen on Candles.
The pattern analysis clearly show that post achieving
breakout from the sideways consolidation zone, the NIFTY is clearly resisting
the upper rising trend line drawn highs of 9150-9200 zones and is tracking the
upper Bollinger Band.
All and all, as mentioned often in our previous notes, the
inherent trend remains intact but the Markets are also evidently showing signs
of tiredness and some fatigue at higher levels. This leaves us exposed to mild
profit taking bouts from higher levels. Sectoral out-performance will continue
and we reiterate maintaining moderate positions and making select purchases
while vigilantly protecting profits at higher 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
+91-98250-16331
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