MARKET OUTLOOK FOR THURSDAY, AUG 24, 2017
The Markets saw a sharp up move on Wednesday mainly led by
short covering and this saw the benchmark NIFTY50 ending the session with net
gains of 86.95 points or 0.89%. With this, for the second time in this month,
the level of 50-DMA and its filter which also happens to be the previous
immediate low of 9685 stands validated and remains a sacrosanct support for the
Markets in the immediate short term. We expect a quiet start to the session on
Thursday and will see volatility to persist as we have a short week with Friday
being a trading holiday.
The levels of 9875 and 9920 will act as likely resistance
levels for the Markets on Thursday. Supports can be expected at 9800 and 9865
zones.
The Relative Strength Index – RSI on the Daily Chart is
49.1959 and it remains neutral not showing any bullish or bearish divergence.
The Daily MACD still continues to remain bearish while trading below its signal
line but it has started to narrow its trajectory. No significant formations are
seen on Candles.
The pattern analysis shows that the levels of 50-DMA has
once again provided support to the Markets and the Markets have closed up
comfortably above it. In event of any consolidation continuing, this 50-DMA
level is expected to continue to act as support followed by its immediate
previous low of 9685.
Overall, the Markets continue to remain under fierce
consolidation. Having said this, we continue to recommend maintaining a
watchful eye on the Markets. Markets are currently not completely out of the
woods and might still resist to its immediate short term 20-DMA. All this
translate into one thing. Though we averted any serious weakness as of now,
runaway rise too should not be expected. We continue to recommend maintaining
stock specific and cautious outlook on the Markets.
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
