MARKET OUTLOOK FOR TUESDAY, AUG 08, 2017
The Indian Equity Markets made no meaningful headway as it
oscillated in a very narrow range before ending the day with minor loss of 9
points or 0.09%. On Tuesday, we can expect a quiet start to the Markets. We
expect modest corrective undertone to persist and we are once again seeing
shorts entering the system. In any given case, the zones of 10114-10150 have
now become even more critical to watch out for as they are likely to remain
immediate resistance zone for the Markets. Unless this area is breached
significantly, it is unlikely that we will see any significant and meaningful
up move.
The levels of 10114 and 10150 will act as immediate
resistance levels for the Markets. Supports come in at 9990 and 9945 levels.
The Relative Strength Index – RSI on the Daily Chart is 65.8673
and it remains neutral showing no divergences of any kind against the price.
The Daily MACD has turned bearish as it has reported a negative crossover and
it now trades below its signal line. No significant formations were observed on
Candles.
The pattern analysis shows that the Markets are heading
nowhere after marking its immediate highs in the 10114-10150 zones. It trades
well above the rising trend line pattern support and in event of any corrective
move; this pattern is likely to act as support.
All and all, we do not see the Markets making any
significant move and are expected to remain range bound. We expect corrective
undertone to persist but with limited declines. We recommend using all up moves
to protect and book profits. Shorts should be avoided and downsides should be
used to make modest purchases. Continuance of cautious outlook is advised for
today.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Member:
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
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