MARKET OUTLOOK FOR WEDNESDAY, SEP 20, 2017
Much on the expected lines, the benchmark NIFTY50 did not
see any runaway rise despite a buoyant session a day before. The Markets on
Tuesday saw the Index oscillating in a 25-point range while it ended flat with
negligible loss of 5.55 points or 0.05%. On Wednesday, we expect the Markets to
continue to consolidate and struggle to clear the immediate resistance zone of
10150-10170. Even if it does manage to mark new highs, it will continue to
remain vulnerable to volatile profit taking bouts form higher levels. Going on,
we will see more stock-specific Markets then a general trend.
The levels of 10170 and 10230 will continue to pose
immediate resistance to the Markets. Supports come in at 10090 and 10025 levels.
The Relative Strength Index – RSI on the Daily Chart is 65.6080
and it stays neutral showing no divergences against the price. Daily MACD stays
bullish while trading above its signal line. No significant formations were
observed on Candles.
While the NIFTY continued to trade comfortably in the
multi-month upward rising channel that it has formed over couple of days, the
size of the bar is getting smaller due to reduced intraday bands. This often
reflects indecisiveness among participants.
All in all, we feel that couple of sessions going ahead is
more likely to remain stock-specific ones. Any runaway rise in the NIFTY is not
expected. If the NIFTY moves past its recent highs and marks fresh highs, then
the vulnerability of the Markets facing volatile profit taking bouts too will
increase. We recommend continuing to adopt stock specific approach in the
sessions to come while maintaining cautious view on the Markets. Shorts should
be avoided as inherent trend remains intact.
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
+91- 70164-32277
/ +91-98250-16331
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