Wednesday, January 17, 2018


The Indian Equity Markets halted their winning streak as it chose to consolidate, though in a bit volatile manner. The Markets remained under modest pressure immediately since opening in the green and finally ended the day with NIFTY50 losing 41.10 points or 0.38%. Going ahead from here, the NIFTY has established 10800-mark as its all important immediate resistance and we will see the Index oscillating in a defined range while continuing to resist at this point. It should be noted that the undercurrent remains evidently bullish and we will not see any significant downsides but will certainly see some consolidation happening.
The levels of 10745 and 10800 will play out as immediate resistance area for the Markets. Supports come in at 10645 and 10610 levels.
The Relative Strength Index – RSI on the Daily Chart is 67.7798 and it has just crossed below from a topping formation. It does not show any bullish or bearish divergence and stays neutral. The Daily MACD continues to remain bullish while trading above its signal line. A Engulfing Bearish candle on the Charts show that the up move may temporarily be halted and we may be pushed into some short consolidation once again.
The pattern analysis show the NIFTY halting its up move after breaking above the 10490-mark. Having said this, it continues to display buoyant undercurrent and points towards some range bound consolidation and no major downsides.
All in all, we may see this consolidation persist for some time however; the possibilities are very less that any major downtrend will emerge. At the most, we expect the Markets to oscillate in a broad range while some volatility will remain ingrained in the Markets. With no signs of any major downsides whatsoever, we recommend refraining from creating any major short positions. Though cash should be preserved and it is advised to remain highly stock specific. However, long bias should be maintained while approaching the Markets on a cautious note.

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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