Friday, December 1, 2017


In our previous note, we had mentioned above confirmation of the levels of 10410 becoming a temporary lower top for the Markets. Thursday’s expiry session saw the volatility on expected lines but the session remained weaker than expected. The benchmark NIFTY50 ended the day losing 134.75 points or 1.30% after failing to sustain a feeble attempt to recovery. While we step in to the December Series, Thursday’s session was technically significant. We may see a flat to mildly positive start on Friday but that thing aside, the levels of 10410 has been confirmed as a lower top for the Markets after 10490.

Friday’s trade may see the levels of 10180 and 10150 playing out as immediate supports for the Markets. Upsides may find resistance at 10250 and 10310 zones.

The Relative Strength Index on the Daily Chart is 44.9564 and remains neutral while showing no divergence to the price. The Daily MACD has reported a negative crossover and it is now bearish while trading once again below its signal line. A Big Black Candle that emerged today reaffirmed the credibility of the resistance levels and further it is also accompanied with a “Falling Window” formation. This results after a weak / black candle which emerges with a gap on the downside and this also usually results into continuation of a weak trend.

The pattern analysis confirms the levels of 10410 as a lower top for the Markets after the levels of 10490 as evident from the Chart.

Overall, there are chances that the Friday’s session may see some attempts of a technical pullback but it would be extremely critical to see if the Markets sustain such attempted pullback, if any. The immediate supports exist in the 10180-10200 zones which is a important pattern supports that also coincides with the 50-DMA for the Markets. The current structure of the Charts has most likely pushed our Markets into prolonged time frame of consolidation. We recommend remaining light on overall exposures and maintain a cautious view on the Markets.

Milan Vaishnav, CMT, MSTA
Technical Analyst 
(Research Analyst, SEBI Reg. No. INH000003341)

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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