MARKET OUTLOOK FOR FRIDAY, JULY 14, 2017
Global positivity fueled by Federal Reserve’s Chair Janet
Yellen’s comments coupled with favorable macro economic data pushed the buoyant
Markets even higher as the benchmark NIFTY50 scaled yet another fresh high and
ended the day with decent gain of 75.60 points or 0.77%. On Friday, a positive
start yet again is expected. Despite the overbought nature of the Markets which
certainly compels the participants to remain vigilant at these levels, buoyancy
is likely to persist in the Markets going ahead.
The levels of 9935 and 9960 are likely to act as resistances
ahead as we remain in the uncharted territory, supports will come in at 9820
and 9750 zones.
The Relative Strength Index – RSI on the Daily Chart is 76.2165
and it has marked a fresh 14-week high which is bullish. However, it trades in
overbought territory. The Daily MACD stays bullish while trading above its
signal line. On Candles, a rising window occurred. This is essentially a gap
which indicates buoyant uptrend to persist and continue.
Pattern breakout is seen as the Markets continue to chart in
uncharted territory marking higher tops and higher bottom in a rising channel.
It is approaching the measuring implications of the breakout that occurred from
8900-8950 levels but it still has some distance to travel.
The Markets are overbought and the lead indicators remain in
overbought territory. This certainly warrants caution from the Market
participants but it is much evident from the F&O data and the overall
structure that the buoyancy is likely to persist. We reiterate to avoid shorts
at any levels, remain stock specific and continue to protect profits at higher
levels vigilantly while we chase the momentum.
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
