MARKET OUTLOOK FOR TUESDAY, MAY 23, 2017
Classical consolidation was what was seen in the Indian
Markets on Monday as the Markets headed nowhere and ended the day with minor
gains of 10.35 points or 0.11% after paring nearly all of its initial gains. On
Tuesday, we expect a quiet start to the Markets. We do not expect Markets to
make any meaningful headway in coming days. Consolidation is expected to
continue. No structural weakness is expected and the zones of 9380-9400 will
act as important pattern support for the short term.
The levels of 9475 and 9510 will continue to act as
resistance zone for the Markets. Supports come in at 9380 and 9350 zones.
The Relative Strength Index – RSI on the Daily Chart is
61.2181 and shows no divergence on either side against the price. The Daily
MACD has reported a negative crossover and it is now bearish while trading
below its signal line. No significant formations were observed on Candles.
The pattern analysis shows the Markets remaining in a sharp
wedge formation on the Close Charts. The Markets as of now continues to tread
below and resist to the rising trend line drawn from 9215 levels.
The rising nature of the trend line will continue to take
resistance levels higher with each passing day. This makes achievement of a
clear breakout very difficult. Not only this temporarily halts the up move but
is likely to put the Markets under consolidation for a longer period. We
continue to recommend remaining highly stock specific and keep over exposures
to modest levels.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.