MARKET OUTLOOK FOR MONDAY, OCT 23, 2017
In our couple of previous notes, we had pointed out that due to
certain factors the Markets may not achieve a clean break out and might return
to the broader trading range that it has developed over last couple of weeks.
Such unfavorable technical factors weighed heavy on the Markets and following
this, the just one-hour Muhurat Trading session on Thursday remained one of the
worst of recent times. The benchmark NIFTY50, which never otherwise sees
volatile movements on such occasions, went on to end with net loss of 64.30
points or 0.63% after some recovery from the low point of the day. Going into
trade on Monday, we believe that corrective undertone might persist and for the
immediate foreseeable future, the levels of 10250 will act as immediate major
resistance area.
The levels of 10195 and 10250 will act as immediate resistance
area for the Markets. Supports come in at 10065 and 9980.
The Relative Strength Index – RSI on the Daily Chart is 59.1669
and it remains neutral showing no divergences against the price. The Daily MACD
is bearish while trading below its signal line.
While having a look at pattern analysis, it is very much evident
that the Markets did not achieve a clean break out while attempting to move
past the 10190 levels. In all probability, since the NIFTY has ended below these
levels, it will return again into this broad trading range.
With the high probability of the Index returning into the broad
trading range and not achieving a clear breakout, we might see volatility
returning to the Markets as well. Coming week will also see rollovers
dominating the intraday trajectory of the trade. Up moves, if any, will
continue to face resistance in the 10200-10250 zones. Select sector
out-performance will be seen. Overall, cautious view is advised 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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