Monday, July 17, 2017

MARKET OUTLOOK FOR MONDAY, JULY 17, 2017

MARKET OUTLOOK FOR MONDAY, JULY 17, 2017
Markets saw a negligible decline on Friday’s session after it pulled back from the low point of the day to end the session with minor losses of 5.35 points or 0.05%. Though the Markets had a buoyant week and has been scaling fresh highs every other day, it is time for the momentum chasers to remain very cautious not to get caught off-guard as the Markets have made itself vulnerable to profit taking bouts from higher levels. A flat opening is expected on Monday and overbought nature of the Market demand caution from momentum chasers.

The levels of 9915 and 9940 will act as immediate resistance levels for the markets. Supports come in much lower at 9820 and 9770 zones.

The Relative Strength Index – RSI on the Daily Chart is 75.3711 and it remains neutral showing no divergences against the price. The Daily MACD stays bullish while trading above its signal line. No significant formations are observed on Candles.

Pattern analysis clearly shows the NIFTY trading once again above the rising trend line drawn from 9200-levels. Just as it was the case before, in event of any correction, this trend line is likely to act as support.

Overall, while not disputing the intact up trend in the Markets, the lead indicators remain overstretched and it is long overdue that the Markets take a breather. It would be healthy for the Markets if it takes a breather and consolidates. We recommend approaching Markets with caution and also recommend having modest exposures in the Markets while protecting positions at higher levels vigilantly.

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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