MARKET OUTLOOK
FOR THURSDAY, NOV 02, 2017
In a striking contrast to what was expected for Tuesday, the
NIFTY50 notched up decent gains while it ended the day with net up move of 105.20
points or 1.02%. This up move has come up after a brief congestion some range
bound move and it can be generally expected that this may cause the upward
momentum to continue. Momentum may remain, and traders generally have no choice
but to chase the momentum. One may do so, but still continue to maintain
extremely vigil at higher levels and continue to use up move more for
protecting profits at higher levels. The breadth of the Markets continues to
remain a niggling technical worry and current high of the Markets resists to a
19-month long upward rising trend line.
The levels of 10455 and 10495 may pose some resistance to the
Markets. Supports come in at 10380 and 10350 zones.
The Relative Strength Index – RSI on the Daily Chart is 71.5751.
It has marked a fresh 14-period high which is bullish but it now trades in
overbought territory. The Daily MACD stays bullish while trading above its
signal line. A rising window occurred on Candles. This is essentially a gap and
results in continuation of upward momentum.
The pattern analysis shows the Markets continuing to surge ahead
post its breakout from 10200 zones after a very brief consolidation in between.
All and all, buoyancy may persist and the liquidity may continue
to chase the momentum given the present structure of the Chart. However, we
have to now chase the momentum with great vigil given the each up move. As
mentioned above, the market breadth and the NIFTY testing the 19-month long
trend line may continue to remain a niggling source of technical worry. We
recommend remaining extremely selective on fresh purchases while maintaining
high vigil and protecting profits at at higher levels.
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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