MARKET OUTLOOK FOR MONDAY, OCT 30, 2017
After remaining range bound in a narrow range all throughout the
day on Friday, the Indian Equity Markets lost some ground as the benchmark
NIFTY50 ended the session losing 20.75 points or 0.20%. In all likelihood,
going into trade on Monday and ahead, we see some more consolidation happening in
the Markets. The Markets are likely to trade on the similar lines just like
previous entire week. We may see Markets attempting marginal highs but the
clean breakout may still remain elusive and we may see some prolonged
consolidation in the equity markets.
The levels of 10365 and 10390 will play out as immediate
resistance area for the Markets. Supports come in at 10280 and 10235 zones, which
are relatively lower than the resistance area.
The Relative Strength Index – RSI on the Daily Chart is 68.5197
and it shows Bearish Divergence as while the NIFTY marked a fresh 14-period
high, the RSI did not. Daily MACD stays bearish while trading below its signal
line. No significant observations were seen on Candles.
The pattern analysis shows that the NIFTY traded for quite long
time for couple of weeks in a broad trading range. In the previous week, the
NIFTY has attempted a breakout from this broad trading zone. It has marked
fresh highs, but in coming days, it is likely to consolidate at higher levels.
Overall, the closing of the NIFTY above the Bollinger band makes
upward breakout possible. However, in the same breath, there are evident
divergent signals on the lead indicators on the Daily and Weekly Charts. Due to
this, it is highly possible that despite buoyant undercurrents just like in the
previous week, we continue to see Markets consolidating at higher levels. We
continue to recommend adopting stock specific approach to the Markets on Monday
and on coming days as well.
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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