Sunday, May 21, 2017

MARKET OUTLOOK FOR MONDAY, MAY 08, 2017

MARKET OUTLOOK FOR MONDAY, MAY 08, 2017
The Indian Equity Markets on Friday witnessed a corrective bout of activity once again as the benchmark NIFTY50 remained in downward trajectory for the entire session while ending the day with net loss of 74.60 points or 0.80%. The Friday’s session remained significant as it reinforced the importance of levels of 9365-9370 as a major and immediate resistance. On Monday, we might expect a minor opening uptick but all and all, the corrective action within a defined range will continue.

The levels of 9330 and 9370 will act as immediate resistance while supports will come in at 9250 and 9225 zones.

The Relative Strength Index – RSI on the Daily Charts is 57.8490 and stays neutral. The Daily MACD is still bullish as it trades above its signal line. But in all likelihood it is moving towards negative crossover. A big black candle has emerged. This holds significance as it has occurred near a resistance area and thus reinforces the credibility of the resistance zone.

The pattern analysis show that while maintaining the primary uptrend and remaining in upward rising channel, the NIFTY met with multiple pattern resistance near the 9350-9375 zones. The rally halted here and the Markets since then have been moving sideways in a broad trading range remaining in consolidation once again.

 Though we have often reiterated that the primary uptrend remains intact, we wish to stress that we might see some prolonged period of consolidation until the levels of 9370 are breached on the upside. We will see Markets continuing to trade in a defined range while remaining mildly volatile. No immediate upsides are likely to occur before the Markets attempts to breach its previous high. Overall, positive caution 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



+91-98250-16331 

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