Thursday, December 21, 2017


On the expected lines, the Markets continued with their up move and had a follow-through session on Tuesday as the Index inched higher and ended the day with net gains of 74.45 points or 0.72%. The session remained within the defined parameters as the NIFTY moved closer to its life-time high level of 10490. Wednesday is likely to see a quiet to modestly positive opening. In all likelihood, the NIFTY may attempt to test 10490 levels but at the same time, it would be immensely important to observe the behavior of the Markets vis-à-vis this lifetime high level of 10490 which is likely to pose resistance to the markets.

The levels of 10490 and 10535 will play out as resistance levels for Wednesday. Supports come in lower at 10390 and 10335 zones.

The Relative Strength Index – RSI on the Daily Chart is 62.6297 and it has marked a fresh 14-period high which is bullish. The Daily MACD is bullish while trading above its signal line. No significant formations were seen on Candles.

Going by pattern analysis, the NIFTY has successfully managed to break out of the falling channel which was formed as its intermediate trend. The moving past of NIFTY significantly above 10490 would be important for a sustainable up move to occur. Until this happens, we may again see the Markets being forced into consolidation.

All and all, buoyant undercurrent may continue. However, while we approach the levels of 10490 and before a significant breakout occurs, we may see some profit taking happening at higher levels. The Markets remain vulnerable to some minor profit taking bouts and this may instill some volatility into the Markets in general. We recommend making stock specific purchases at modest levels and concentrate more in protecting profits at higher levels.

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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