Tuesday, October 3, 2017

MARKET OUTLOOK FOR TUESDAY, OCT 03, 2017

MARKET OUTLOOK FOR TUESDAY, OCT 03, 2017
Caution weighed heavy on Friday in the last hour and half of trade as the decent pullback in the benchmark NIFTY50 turned out to be a session with just modest gains as the Markets ended the day with gains of just 19.65 points or 0.20%. On Tuesday, the Indian Markets will begin the week after a long Weekend and is expected to start on a stable note. We expect the Markets to open on a modestly positive and stable note and is expected to continue to trade in a defined range with the levels of 9685 acting as key supports.

Tuesday will see the levels of 9850 and 9875 acting as resistance levels while supports are expected to come in at 9740 and 9685 zones.

The Relative Strength Index – RSI on the Daily Chart is 38.5208 and remains neutral showing no divergences against the price. The Daily MACD is bearish while it trades below its signal line but it has flattened its trajectory. No significant formations were observed on Candles.

The pattern analysis shows that the NIFTY has taken support once again at the previous immediate low of 9685. It has pulled back once again while marking this area as a major pattern support. It now trades in a broad trading range as marked on the Charts.

It is very much evident that given the sharp corrective move from 10179 levels, the primary uptrend remains disrupted. However, it should also be noted that there are no signs of any trend reversal as well. So long as NIFTY trades above 9685 zones, it is recommended that shorts should be strictly avoided. Until the Markets catch the directional bias again, we can utilize the dips to make select purchases. Cautiously positive approach 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  


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