Gemstone Equity Research & Advisory Services

Friday, September 8, 2017

MARKET OUTLOOK FOR FRIDAY, SEP 08, 2017

MARKET OUTLOOK FOR FRIDAY, SEP 08, 2017

In our yesterday’s note, we had expected the Markets to remain in a very limited range with positive bias. In line with this analysis, the Thursday’s session saw the NIFTY oscillating in a very narrow range. The Markets made no meaningful headway but still remain resilient and ended the day with minor gains of 13.70 points or 0.14%. We expect a quiet opening once again on Friday but also expect the Markets to continue to trade with positive bias. Short term moment is likely to be maintained with the Markets continuing to trade above all of its averages.

The levels of 9965 and 10030 will act as immediate resistance levels for the Markets. Supports come in at 9850 and 9810 levels.

The Relative Strength Index – RSI on the Daily Chart is 53.0796 and it continues to remain neutral showing no divergence; either bullish or bearish. The Daily MACD is flattened but it trades above its signal line and it is bullish. No significant formations were observed on Candles.

The pattern analysis show that the NIFTY continues to trade well within the rising channel as evident in the Charts. However, it is currently tracking its 50-DMA which has now almost become its proxy trend line.

The levels of 20-DMA and 50-DMA now remain in very close vicinity. However, it also reveals that the NIFTY has lost momentum off late but it still continues to trade above all of the averages. Going by the number of days, this is perhaps the highest number of days that the Markets have formed consolidating and trading in a defined congestion zone. Though we still have all the evidences present on the Charts that show that the underlying current still have an upward bias, we need to approach the Markets with some amount of caution. We recommend remaining highly stock specific and vigilantly protect profits at higher levels.

Milan Vaishnav, CMT

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

Associate International Member:

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

Thursday, September 7, 2017

MARKET OUTLOOK FOR THURSDAY, SEP 07, 2017

MARKET OUTLOOK FOR THURSDAY, SEP 07, 2017

The buoyant intent of the domestic Equity Markets was interrupted once again by geopolitical tensions around Korean peninsula as the benchmark NIFTY ended the session on Wednesday with a modest loss of 36 points of 0.36%. However, the show of the Indian Markets remained much resilient as recovered nearly half of its early morning losses. Stock specific buying was evidently seen in some distinct quarters as the recovery came along with addition of Net Open Interest. On Thursday, we expect a positive start and expect the markets to oscillate in a limited range with positive intent.

The levels of 9950 and 10045 will continue to act as immediate resistance levels for the Markets. Supports come in at 9870 and 9850 levels.

The Relative Strength Index – RSI on the Daily Chart 52.1715 and continues to stay neutral showing no divergence against the price. The Daily MACD stays bullish while trading above its signal line. No significant formations were observed in NIFTY.

Markets have not made any significant and meaningful headway and therefore, it continues to oscillate in a very narrow range. It has formed a small congestion zone but continue to remain in a overall rising channel that it has been trading in over past couple of months.

All and all, F&O data indicate that there will be limited downsides in event of any negative global news flow and the Indian Markets are likely to pose resilience to any major downsides. So long as the NIFTY continues to trade above its short term 20-DMA and 50-DMA, any sentimental dip is likely to attract buying from lower levels. Though the Bollinger bands are getting narrower, they individually do not throw any reading as of now. Given the overall structure of the Markets, we continue expect some stability and expect NIFTY to show some modest upsides again and consolidate at higher levels. Positive caution is advised for the day.