Friday, October 13, 2017

MARKET OUTLOOK FOR FRIDAY, OCT 13, 2017

MARKET OUTLOOK FOR FRIDAY, OCT 13, 2017
Thursday session remained quite buoyant on for the Indian Equities as the benchmark NIFTY50 ended the day with a robust uptick ending the day with net gains of 111.60 points or 1.12%. Session remained sideways for the most part of the day and the bulk of the gains came in the last hour and half of the trade. Going into trade on Friday, we expect this up tick to continue and in the same breath, expect the Markets to face serious resistance going ahead from here. We should not be surprised if the NIFTY continues with its up move on Friday and also if it faces consolidation and some resistance at higher levels.

The levels of 10135 and 10180 will play out as major resistance area for the markets. Support can be expected around 10040 and 9990 area.

The Relative Strength Index – RSI on the Daily Chart is 60.6702 and it has marked a fresh 14-period high which is bullish. Daily MACD trades comfortably above its signal line and are bullish. A strong white body occurred on Candles. Its emergence is important as it has occurred after a brief consolidation of the Markets near its support area of 50-DMA.

Pattern analysis shows that the NIFTY is now not only well within the upward rising channel but also now trades comfortably in the broad rectangular trading range that the Markets have established. This is marked using red dashed-lines on the Daily Charts. It should not come as a surprise if the NIFTY spends some time in this broad trading range.

Taking a view specifically about Friday’s session, the NIFTY is likely to see a modestly positive start. There will be sentimentally positive reaction to the better-than-expected numbers from TCS. Other front line companies are also due to report their numbers in next couple of days. All these reactions are likely to keep the Markets volatile and in a trading range trading with upward bias. Though we continue to reiterate completely avoiding shorts, we also recommend exercising higher degree of caution as the NIFTY attempts to once again attempt to test its previous highs. Overall, cautious optimism is what we advise for the day.

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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