MARKET OUTLOOK FOR FRIDAY, SEP 08, 2017
In our yesterday’s note, we had expected the Markets to
remain in a very limited range with positive bias. In line with this analysis,
the Thursday’s session saw the NIFTY oscillating in a very narrow range. The
Markets made no meaningful headway but still remain resilient and ended the day
with minor gains of 13.70 points or 0.14%. We expect a quiet opening once again
on Friday but also expect the Markets to continue to trade with positive bias.
Short term moment is likely to be maintained with the Markets continuing to
trade above all of its averages.
The levels of 9965 and 10030 will act as immediate
resistance levels for the Markets. Supports come in at 9850 and 9810 levels.
The Relative Strength Index – RSI on the Daily Chart is
53.0796 and it continues to remain neutral showing no divergence; either
bullish or bearish. The Daily MACD is flattened but it trades above its signal
line and it is bullish. No significant formations were observed on Candles.
The pattern analysis show that the NIFTY continues to trade
well within the rising channel as evident in the Charts. However, it is
currently tracking its 50-DMA which has now almost become its proxy trend line.
The levels of 20-DMA and 50-DMA now remain in very close
vicinity. However, it also reveals that the NIFTY has lost momentum off late
but it still continues to trade above all of the averages. Going by the number
of days, this is perhaps the highest number of days that the Markets have
formed consolidating and trading in a defined congestion zone. Though we still
have all the evidences present on the Charts that show that the underlying
current still have an upward bias, we need to approach the Markets with some
amount of caution. We recommend remaining highly stock specific and vigilantly
protect profits at higher levels.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Member:
CMT Association (Formerly known as Market
Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA),
CANADA
Associate International Member:
Society of Technical Analysts (STA),
UK
+91- 70164-32277
/ +91-98250-16331
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