MARKET OUTLOOK
FOR WEDNESDAY, JAN 03, 2018
The benchmark Index NIFTY50 continued to witness fierce consolidation
as it ended a volatile day of trade on Tuesday nearly flat with minor gains of 6.65
points or 0.06%. The highlight of the session was the serious resistance that
the levels of 10490-posed in the morning trade. The Markets immediately
retraced once it tested its resistance area. The area of 10490-10535 will
continue to remain critically important area that the Markets will have to
breach for a comprehensive breakout.
While the levels of 10490 and 10535 will act as immediate
resistance area, the levels of 10405 and 10365 will act as supports.
The Relative Strength Index – RSI on the Daily Chart is 55.7205
and it continues to stay neutral against the price. The Daily MACD is bullish
as it continues to trade above its signal line. No significant formations are
observed on Candles.
The pattern analysis have once again reinforced the
credibility of the resistance of the 10490-mark. Going ahead, the zones of 10490-10535
will continue to act as major resistance.
While the mentioned zone of 10490-10535 acts as immediate
resistance, the Inter-Market Analysis offers cues as to whether we will see
deeper and serious correction or just plain simple range bound consolidation. Our Markets historically enjoys very high and
strong correlation with the Hang Seng (Hong Kong Index). This Index has broken
above its previous highs and now trades at historically high levels. In all likelihood,
we may resume our up move after much under-performance vis-à-vis the Asian
peers over previous days.
However, until this happens, we need to approach the Markets
with caution. Until the directional up move is re-established, exposures should
be kept limited. Highly stock specific approach but positively cautious view 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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