MARKET OUTLOOK FOR MONDAY, MAY 08, 2017
The Indian Equity Markets on Friday witnessed a corrective
bout of activity once again as the benchmark NIFTY50 remained in downward
trajectory for the entire session while ending the day with net loss of 74.60
points or 0.80%. The Friday’s session remained significant as it reinforced the
importance of levels of 9365-9370 as a major and immediate resistance. On
Monday, we might expect a minor opening uptick but all and all, the corrective
action within a defined range will continue.
The levels of 9330 and 9370 will act as immediate resistance
while supports will come in at 9250 and 9225 zones.
The Relative Strength Index – RSI on the Daily Charts is
57.8490 and stays neutral. The Daily MACD is still bullish as it trades above
its signal line. But in all likelihood it is moving towards negative crossover.
A big black candle has emerged. This holds significance as it has occurred near
a resistance area and thus reinforces the credibility of the resistance zone.
The pattern analysis show that while maintaining the primary
uptrend and remaining in upward rising channel, the NIFTY met with multiple
pattern resistance near the 9350-9375 zones. The rally halted here and the
Markets since then have been moving sideways in a broad trading range remaining
in consolidation once again.
Though we have often
reiterated that the primary uptrend remains intact, we wish to stress that we
might see some prolonged period of consolidation until the levels of 9370 are
breached on the upside. We will see Markets continuing to trade in a defined
range while remaining mildly volatile. No immediate upsides are likely to occur
before the Markets attempts to breach its previous high. Overall, positive
caution is advised for the day.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Member:
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
+91-98250-16331
