Monday, July 24, 2017

MARKET OUTLOOK FOR MONDAY, JULY 24, 2017

MARKET OUTLOOK FOR MONDAY, JULY 24, 2017
The Markets on Friday saw a remarkable recovery from the lows of the day and ended at a fresh high point as benchmark NIFTY50 posted gains of 41.95 points or 0.42%. On Monday, we once again expect a quiet start to the Markets. On the Charts, the Markets still continue to throw enough signals that some imminent corrective action, even if it is in form of a range bound consolidation is expected. Given the structure of the Markets on Weekly Charts, every up move now has to  be approached with a high sense of caution.

On Monday, we will see 9925 and 9980 acting as possible resistance levels for the day. Supports come in lower at 9840 and 9775 zones.

The Relative Strength Index – RSI on the Daily Chart is 68.0091 and it remains neutral showing no divergence against the price. The Daily MACD stays bullish while it trades above its signal line. On Candles, a long lower shadow occurred. This has occurred near the high levels and warrants a caution as it can potentially halt this current up move.

The pattern analysis show that the Markets are trading well above the trend line drawn from 9200 levels and in event of any consolidation or minor corrective move, we can expect this to act as support.

All and all, it would be difficult for the NIFTY to see any unabated up move without any consolidation. As a result of this, we will continue to see volatility remaining ingrained in the markets. Also, the Bollinger bands which are 46.83% wider-than-normal may prevent any sustainable runaway rise. We recommend approaching the Markets with a very cautious view and protect exposures 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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