MARKET OUTLOOK FOR MONDAY, MAY 15, 2017
In our Friday’s note, we had mentioned about possibilities
of the Markets continuing to show corrective tendencies as it exhibited enough
signs of fatigue. In line with this, the NIFTY on Friday ended the day with
losses of 21.50 points or 0.23% though it came off from its intraday lows
before closing. We expect Monday to be no different. NIFTY50 is expected to
continue to remain in a range, continue to consolidate while remaining
vulnerable to profit taking bouts from higher levels although the overall
downsides will remain very much limited.
The levels of 9450 and 9470 will act as immediate trend line
resistance for the Markets. Supports come in at 9365 and 9310 zones.
The Relative Strength Index – RSI on the Daily Chart is
65.0072 and it remains neutral showing no divergences of any kind against the
price. The Daily MACD is flattened but it presently trades above its signal
line. On Candles, a black candle resembling a “hanging man” occurred. However,
this is not a classical formation as the length of the lower shadow is not of
adequate size and it is smaller than what it is required for a classical
formation.
The pattern analysis shows the Markets continuing to resist
to the upper trend line drawn from 9200 level. The nature of the trend line is
rising so with each passing day, the resistance it offers to the NIFTY on the
upside also rises. So, it becomes much difficult for the Markets to achieve a
clear breakout in such scenario.
All and all, enough signs of fatigue continue to persist on
the Charts. There are little triggers that would cause any runaway rise to the
Markets. We expect some consolidation to continue for some more time and NIFTY
is expected to continue to trade in a defined range with relatively limited
downsides.
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
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