MARKET OUTLOOK FOR TUESDAY, JAN 16, 2018

MARKET OUTLOOK FOR TUESDAY, JAN 16, 2018

Indian Equity Markets had a robust start to the Week as the benchmark NIFTY opened higher on expected lines. It scaled yet another fresh peak and though it came off slightly from the high point of the day, still posted gains of 60.30 points or 0.56%. Markets have not officially confirmed its breakout from the 10490-mark and has placed itself into unchartered territory. We expect yet another modestly positive start to the Markets. However, going into trade on Tuesday, we cannot ignore the fact that the Markets are now overbought and may face stiff overhead resistance in the 10800-10850 zones while it tests the 24-month long upward rising trend line on the Weekly Charts.

The levels of 10780 and 10825 will play out as immediate resistance area while the supports will come in at 10690 and 10610 zones.

The Relative Strength Index – RSI on the Daily Chart is 72.9336 and it has marked a fresh 14-period high which is bullish. Daily MACD stays bullish while trading above its signal line. On the Candles, a Rising Window occurred. Normally this would imply continuation of uptrend. However, in the present context of the Markets being overbought in nature, might have to make extra efforts for the continuation of up move.

The pattern analysis shows the NIFTY comfortably cruising ahead after a breakout from the 10490-mark and further up after a brief breather and consolidation in between. It is clearly seen inching higher towards its overhead resistance area which falls near the 10800—10850 mark.

Overall, the structure of the Chart and the F&O data point towards likely continuation of up move, we cannot ignore the overbought nature of the Markets. This may result into some volatile profit taking bouts from higher levels. However, as of now, the intent of the Markets remain remarkably buoyant. Though there is some more steam left in the Markets to inch higher, we recommend making select purchases. However, this should be done with extreme caution and with very vigilant protection of profits at higher levels.

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

MARKET OUTLOOK FOR MONDAY, JAN 15, 2018

MARKET OUTLOOK FOR MONDAY, JAN 15, 2018

The session on Friday remained much volatile while the benchmark NIFTY50 swung nearly 80-odd points back and forth amid good amount of volatility.  The Markets saw a sharp decline in the late morning day while dipping to the day’s low of 10597.10, but recovered over 80-points before ending the day with net gains of 30.05 points or 0.28%. The Markets have ended the day near the high point and speaking purely on technical note, the Markets are expected to open modestly into the green and continue with its up move, at least in the initial trade.  Though the technicals remain slightly overstretched on the Daily Charts, some more upticks with intermittent corrective bouts may not be ruled out.

The levels of 10705 and 10760 will play out as immediate resistance area for the Markets. Supports come in at 10655 and 10610 zones.

The Relative Strength Index – RSI on the Daily Chart is 69.8058 and it has continued to mark its 14-period high which is bullish. It does not show any divergence against the price. Daily MACD is bullish while it trades above its signal line. On the Candles a Doji emerged. Also a candle with a long lower shadow emerged. However, these have occurred during an uptrend and the Doji has not gapped above the previous bar and therefore they are less significant in the present context.

The pattern analysis clearly show the rally that emerged after the NIFTY broke above the 10490-mark being extended further. There are chances that the NIFTY  tests the 10750-10775 mark and thereafter sees some corrective consolidation happening again.

Overall, there is still some steam left in the Markets to extend its present rally before it starts consolidating again. However, this further up move may be accompanied with minor corrective bouts. Also, we expect the coming sessions to remain somewhat ingrained with volatility as well. With no signs of any retracements, we recommend picking select stocks and keep effectively rotating the sectors while the Markets reaches for its over-head resistance area once again. Cautious optimism is what is advised for the day.

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