Monday, May 22, 2017

MARKET OUTLOOK FOR MONDAY, MAY 22, 2017

MARKET OUTLOOK FOR MONDAY, MAY 22, 2017
The Markets on Friday saw fierce consolidation as the benchmark NIFTY50 not only came off nearly 110-odd points from the high of the day but also recovered 40-odd points from the lows to end the day flat with minor loss of 1.55 points or 0.02%. On Monday, we expect a modestly positive start, but in all senses, the currently consolidation phase is likely to extend itself with the levels of 9380-9400 acting as immediate pattern supports.

The levels of 9460 and 9505 will act as immediate resistance while supports will come in at 9380 and 9350 zones.

The Relative Strength Index – RSI on the Daily Chart is 60.4166 and it remains neutral showing no divergence against the price. The Daily MACD is bullish as it still trades above its signal line. However, it may report a negative crossover in coming days.

Going by pattern analysis, there is formation of a sharp wedge on the Close charts. This may temporarily cause some short term disruption to the current up move and keep markets in range bound consolidation with minor corrective declines.

All and all, as mentioned the current consolidation phase is likely to continue. Even if we see a positive opening, the Markets will still remain vulnerable to minor corrective declines from higher levels. The zones of 9380-9400 are expected to act as major pattern supports. Any breach of these levels will keep the Markets under corrective activity for some more time. We reiterate maintaining stock specific cautious approach to the Markets.

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 

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.