MARKET OUTLOOK FOR THURSDAY, SEP 14, 2017
We had mentioned the level of 10130 to potentially act as a
serious resistance to the Markets on Wednesday. The benchmark NIFTY50 opened on
a subdued note but got stronger as the session progressed marking the high at
10131.95 and came off nearly 70-odd points from the high of the day to Close
with minor loss of 13.75 points or 0.14%. Today on Thursday, we expect a quiet
start to the Markets. We expect the Markets to consolidate and remain
vulnerable to profit taking bouts but inherent bias will continue to remain
positive. Large numbers of shorts that are seen are likely to keep any
corrective downsides limited.
The levels of 10130 will continue to act as resistance level
along with 10185. The supports exist at 10025 and 9960 zones.
The Relative Strength Index – RSI on the Daily Chart is
61.8782 and remains neutral showing no divergences against the price. The Daily
MACD stays bullish while continuing to trade above its signal line. No
significant formations were seen on Candles.
The pattern analysis show that the NIFTY has successfully
broken out of the congestion zone that the Index had created over past couple
of days. The NIFTY continues to trade comfortably in the multi-month upward
rising channel.
All and all, the NIFTY PCR too remains near recent highs.
The Markets remain vulnerable to profit taking bouts from higher levels but the
large number of shorts that exist in the system shall keep the downsides
limited. We recommend refraining from creating short positions as short trap
may occur at lower levels. Markets are likely to continue to consolidate with
positive bias. We continue to recommend making select purchases with each
downside while maintaining cautiously positive outlook for the day.
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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