MARKET OUTLOOK
FOR TUESDAY, NOV 21, 2017
Indian Equity Markets headed nowhere as the benchmark
NIFTY50 oscillated in a narrow and defined range before ending the day with
minor gains of 15.15 points or 0.15%. Despite minor gains on Monday, the level of 10345 was not breached on the upside. Going into trade on
Tuesday, this level will pose important resistance to the Markets. We might see
the Markets remaining vulnerable at higher levels to some profit taking or some
consolidation with the zones of 10180-10200 acting as strong base. As of now,
NIFTY has attempted to take support at its short term 20-DMA.
The levels of 10345 and 10365 will continue to
pose resistance to any up move that the Markets may attempt. The Supports come
in lower at 10200 and 10140 zones.
The Relative Strength Index – RSI on the Daily
Chart is 54.8001 and it remains neutral showing no divergences against the
price. The Daily MACD is still bearish while it trades below its signal line.
No major formations were observed on Candles.
Having a look at pattern analysis, with the NIFTY
not having yet cleared and moved past the levels of 10345, we can consider this
as an intermediate short term resistance to the Markets. We can consider it as
a lower top formed after 10490 levels marking a formidable resistance area.
As of now, the NIFTY has managed to cling to its
short term support of 20-DMA. Also, with the Markets trading above all of the
Moving Averages, there are all chances that we still see it continue to
consolidate. Despite long term buoyant set up, the Markets will find it
difficult to move past 10345-10365 levels and until that happens, we will have
to continue to protect profits at higher levels adopt a cautious view on the
Markets.
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
