Thursday, November 16, 2017

MARKET OUTLOOK FOR THURSDAY, NOV 16, 2017

MARKET OUTLOOK FOR THURSDAY, NOV 16, 2017
The Indian Equity Markets extended its corrective spell and continued to end in the red on Wednesday as well as the benchmark NIFTY50 closed losing 68.55 points or 0.67%. Though we did see some modest recovery in the end but the Index still closed below the 10180-10200 support area. The NIFTY has taken support at its 50-DMA which stand at 10120 and this levels remains a crucial level to watch for at Close levels. Going into trade on Thursday, we can expect a modest start to the trading day but all throughout, it would be extremely crucial for the NIFTY to crawl back above the 50-DMA and reach back towards 10180-10200 which will now act as modest resistance for the Markets.

The levels of 10180 and 10235 will play out as immediate resistance for the Markets if we see a technical pullback. The support now comes at 9979-9980 which is the 100-DMA of the NIFTY.

The Relative Strength Index – RSI on the Daily Chart is 40.8425 and it has continued to mark its 14-period low which is Bearish. No divergence against the price is seen. Daily MACD continues to remain bearish while trading below its signal line. On the Candles, a falling window occurred. This usually implies continuation of weak trend for some more time.

The pattern analysis shows that the NIFTY broke out from the 10180-10200 zones and after that it has not only suffered a 100% throwback, it has dipped inside these levels of 10180-10200 which were otherwise expected to act as its support.

The Markets now currently rests at its 50-DMA and there are chances that it makes feeble attempt to recover and see some pullback. However, the attempts might remain feeble and the corrective pressure may remain evident. The levels of 50-DMA would be crucial support for the Markets at Close levels and failing which we will see possibilities of the NIFTY testing its 100-DMA which is currently at 9979. All in all, we still continue to recommend making extremely select purchases using the corrective pressures. Markets are expected to continue to see isolated stock specific out-performances. Cautious 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  


+91- 70164-32277  /  +91-98250-16331  

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