MARKET OUTLOOK FOR WEDNESDAY, OCT 04, 2017
The Indian Equities had a buoyant session on expected lines as the
benchmark NIFTY50 ended the day with net gains of 70.90 points or 0.72%. Though
the session remained extremely range bound, the positive point was that it
maintained its gains all throughout the day. Going into Wednesday, we expect a
positive start and expect the Markets to continue with its pullback. The
important point to note was the Tuesday’s intraday high. The zones of 9895-9915
are the zone where the Markets resisted and this is the area of the trend line
of the rising channel that he Markets breached on the downside. Going ahead,
this is likely to act as resistance and it would be important for the Markets to
move past this area.
The levels of 9915 and 9940 will act as immediate resistance area
for the Markets. Supports come in at 9820 and 9775 zones.
The Relative Strength Index – RSI on the Daily Chart is 44.6515
and remains neutral showing no divergence against the price. Daily MACD is
bearish as it trades below its signal line. No significant formation on Candles
is observed.
Going by the pattern analysis, it is observed that the NIFTY has
breached the upward rising channel on the downside and while pulling back, it
has resisted to the rising trend line of that channel. So, what was support earlier
is now acting as a resistance.
As mentioned above, it would be important for the Markets to move
past the 9895-9915 zones in order to go back into the upward rising channel.
Going on from there, the NIFTY will have 50-DMA 9945 to tackle with. However,
given all this, we see that the Markets will continue to trade on positive
lines with outright out-performance from select pockets. We expect the pullback
to continue and unless the critical levels of 9685 is broken, all downsides
should be utilized to make select purchases.
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
