Tuesday, September 19, 2017

MARKET OUTLOOK FOR TUESDAY, SEP 19, 2017

MARKET OUTLOOK FOR TUESDAY, SEP 19, 2017
The Indian Equity Markets had a better-than-expected session on Monday as it opened strong and ended the day with net gains of 67.70 points or 0.67%. However, the benchmark NIFTY50 saw this up move on back of sharp short covering. Though we may expect a stable start to the Markets on Tuesday, there are ample signs that the Markets may not see a sustainable up move even if it continues to post intermittent lifetime highs. The zones of 10150-10170 still need to be comprehensively breached and while it happens, we cannot ignore the signs of weariness that are appearing on the Charts.

The levels of 10170 and 10265 will act as immediate resistance levels for the Markets. Supports come in at 10080 and 10010 levels.

The Relative Strength Index – RSI on the Daily Chart is 66.2278 and it has reached its highest value in last 14-days which is bullish. No divergence is seen against the price. The Daily MACD continues to stay bullish while trading above its signal line. A Rising Window” that occurred on the Candles may result into some continued up move on Tuesday.

The pattern analysis show the Market slowly inching up towards the upper zone of the rising channel that it has been trading in. The intraday bands are getting shorter as the NIFTY has remained in a very narrow intraday range over past couple of days.

There are few things that warrant our attention and requires the Market Participants to be cautious about. The NIFTY PCR (Put to Call Ratio) remains at its highest in recent times. The VIX remains at its lowest levels which signals high amount of complacency of the participants. Further, the previous up move has resulted out of a short covering as it has come with reduction in Open Interest. We recommend remaining extremely cautious and adopt stock specific outlook on the Markets.

Milan Vaishnav, CMT, MSTA
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
Society of Technical Analysts (STA), UK  


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