Gemstone Equity Research & Advisory Services

Tuesday, December 12, 2017

MARKET OUTLOOK FOR TUESDAY, DEC 12, 2017

MARKET OUTLOOK FOR TUESDAY, DEC 12, 2017

Despite some volatility that the session on Monday displayed, the benchmark NIFTY50 continued to show strength and the pullback continued as the Index ended the day with a decent gain of 56.60 points or 0.55%. As of Monday’s close, the Index has pulled back nearly 300-points. Not only the validity of the support of 100-DMA has been reinforced, the Index shows potential to test the upper trend line of the intermediate channel that it has formed. While we step into trade on Tuesday, we expect the Markets to open on a quiet to modestly positive note. We expect some morning gains coming in. There is clear room for the Markets to continue its up-tick but the levels of 10360-10380 will be crucial levels to watch and the Markets may find some resistance there.

For Tuesday, the levels of 10350 and 10380 will play out as immediate resistance levels. Supports come in at 10270 and 10210 zones.

The Relative Strength Index – RSI on the Daily Chart 55.7629 and it continues to remain neutral against the price for today. The Daily MACD is still bearish and trading below its signal line but it is sharply narrowing its trajectory. On the Candles, once again, a Rising Window occurred. This implies continuation of the uptrend that the Markets are currently witnessing.

The pattern analysis clearly depicts the Markets remaining in the intermediate falling channel that it has formed. This is a falling channel, an intermediate one, created after forming highs at 10490. Currently, the Daily RSI is still seen making lower highs and it is yet to breach out of a formation. Until this happens, we can expect the Markets to face resistance at higher levels.

Going by the overall structure of the Charts, we might see some more up move coming in. We expect the pullback to continue but in the same breath, we also expect the Markets to face resistance around 10360-10380 levels. If the Markets face resistance around these levels, then the current falling channel on the Daily Chart which has emerged as an intermediate trend will remain valid. It would be crucial to see Markets going beyond these levels. We continue to recommend remaining highly stock specific. Picking right stocks and protecting profits at higher levels will remain crucial as we face Markets in coming days.

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

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91- 70164-32277 / +91-98250-16331

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

Monday, December 11, 2017

MARKET OUTLOOK FOR MONDAY, DEC 11, 2017

MARKET OUTLOOK FOR MONDAY, DEC 11, 2017

On expected lines, the session on Friday saw the Indian Equities firmly advancing their follow-through up move as the Index ended the session gaining 98.95 points or 0.97%. The session was important in many ways as the up move not only firmly validated the support of 100-DMA at Close levels once again but also ended well above the 50-DMA and back in the intermediate falling channel that it has created. Going into trade on Monday, we expect that there is some more room left for the Markets to inch higher. We expect a flat to modestly positive start to the trade and expect the benchmark Index NIFTY50 to continue with its up move. However, at higher levels, we might see NIFTY encountering some resistance.

Monday will see the levels of 10300 and 10335 playing out as important resistance for the Markets. Supports come in at 10200 and 10130 zones.

The Relative Strength Index – RSI on the Daily Chart is 52.2031 and it stays neutral against the price for today. Daily MACD is bearish as it still trades below its signal line. On the Candles, a “Rising Window” emerged. This is a kind of continuation gap on the current charts and usually implies continuation of the up move.

While having a look at pattern analysis, it is evident that the Markets have formed an intermediate channel from the high levels of 10490. As of now, the Markets have inched up once again and trade above all its Moving Averages. The lead indicators are still under a pattern formation involving lower tops and this may see the Markets encountering resistance once again at higher levels.

All in all, we expect a quiet start to the week with a positive bias but also expect the Markets to face resistance going ahead. We recommend avoiding shorts but also recommend continuing to remain highly selective and vigilantly protect profits at higher levels. Cautiously positive outlook is advised for the day.