MARKET OUTLOOK FOR FRIDAY, MAY 19, 2017
In our previous note, we had categorically mentioned that
some corrective activity is long overdue in the Markets. The benchmark NIFTY50
ended the day on Thursday with a net loss of 96.30 points or 1.01%. We may cite
fresh political uncertainty in the US and the resultant weak global set-up for
Thursday’s decline but the correction that we witnesses remains pure technical
in nature. The Markets have marked a immediate top and we expect this
corrective activity to continue for some more time while keeping the primary
uptrend intact.
The levels of 9450 and 9485 will act as immediate resistance
levels. Supports come in at 9375 and 9340 zones.
The Relative Strength Index on the Daily Chart is 60.5907
and it remains neutral. The Daily MACD still remains bullish while trading
above its signal line. No significant formation occurred on Candles.
The pattern analysis show the Markets correct after it
continuously resisted to a rising trend line. We had mentioned that given the
rising nature of the trend line, a clear breakout would be very difficult for
the Markets.
We expect the Markets to display corrective tendencies for
some more time. It is expected that it forms a fresh area pattern and it is not
expected to give any runaway rise. Investors now need to shift their focus on
the good quality stocks that had remained laggards in the immediate phase of
rally. Effective churning of sectors and investing in stocks that had not
participated current phase of rally will hold the key in coming days. Even if
the Markets see some more corrective downsides, the primary uptrend remains
undoubtedly intact.
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.