Gemstone Equity Research & Advisory Services

Friday, November 10, 2017

MARKET OUTLOOK FOR FRIDAY, NOV 10, 2017

MARKET OUTLOOK FOR FRIDAY, NOV 10, 2017

After two sessions of corrective downsides, the benchmark NIFTY50 arrested its down movement as it ended the day flat with nominal gains of 5.80 points or 0.06%. The Markets had opened on a firm note but did not sustain its pullback on much expected lines. However, after paring its early morning gains and testing the intraday lows, the Index recovered nearly 50-odd points at Close levels. Going into traded on Friday, we expect this attempt to pullback to continue. A modestly positive opening is expected and in all chances, the Markets may continue to give some meaningful technical pullback. However, the sustainability of the expected pullback will continue to remain a concern.

The levels of 10350 and 10390 will continue to remain important resistance levels to watch out for. Supports exist at 10265 and 10210 zones.

The Relative Strength Index – RSI on the Daily Chart is 56.2095 and it shows no divergence against the price and remains neutral. The Daily MACD stays bearish while trading below its signal line. No significant formations were seen on Candles.

The pattern analysis continues to show the Index taking a breather after breaking out from 10200 levels. It is evident that it will continue to take a breather and consolidate for some more time before it makes a decisive move upwards.

All in all, we will still see the Markets taking a breather trying to consolidate at current levels. Though there is no structural damage on the Charts, the meaningful up move may still continue to elude us for some time while the Markets continue to consolidate with upward bias. The immediate short term support exist at 20-DMA and we will continue to see the markets in general trying to remain resilient to any major corrective move. Session with continue to remain dominated with stock specific activities.

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

Thursday, November 9, 2017

MARKET OUTLOOK FOR THURSDAY, NOV 09, 2017

MARKET OUTLOOK FOR THURSDAY, NOV 09, 2017

The Session on Wednesday remained under modest corrective pressure as the benchmark NIFTY50 ended the day losing 47 points or 0.45%. As mentioned in our yesterday’s note, the levels of 10390 acted as a resistance as the Index marked the high of 10384.25. Going into trade on Thursday, we expect the markets to see a modestly positive opening. Markets may once again attempt for a pullback but it would be important to see if such attempted pullback sustains as we move ahead in the session.

The level s of 10350 and 10400 will play out as immediate resistance levels for the markets. Supports are expected to come in at 10260 and 10225 zones.

The relative strength index – RSI on the daily charts is 55.7944. The RSI has marked a fresh 14 – period low which is bearish. A Bearish Divergence is also observed as the RSI has marked a fresh 14 period low while the NIFTY did not do so. The daily MACD has also reported a negative crossover and it is not bearish while trading below its signal line.

The patterns analysis shows that while the NIFTY has successfully broken out on the upside from 10199 levels, it is now evidently taking a breather and is expected to consolidate for some more time.

All in all, there are high chances that the NIFTY once again attempts a pullback but however, the sustainability of such attempted pullback needs to be watched. The downsides, if any, are expected to remain very much limited. There is no structural damage on the charts and the fact that overall volumes have remained much lower than average establishes that the declines that we saw are nothing but a classical technical correction. We recommend to continue to remain highly stock specific as we approach the session on Thursday while continuing to keep exposures at moderate levels