MARKET OUTLOOK FOR MONDAY, MAY 22, 2017
The Markets on Friday saw fierce consolidation as the
benchmark NIFTY50 not only came off nearly 110-odd points from the high of the
day but also recovered 40-odd points from the lows to end the day flat with minor
loss of 1.55 points or 0.02%. On Monday, we expect a modestly positive start,
but in all senses, the currently consolidation phase is likely to extend itself
with the levels of 9380-9400 acting as immediate pattern supports.
The levels of 9460 and 9505 will act as immediate resistance
while supports will come in at 9380 and 9350 zones.
The Relative Strength Index – RSI on the Daily Chart is
60.4166 and it remains neutral showing no divergence against the price. The
Daily MACD is bullish as it still trades above its signal line. However, it may
report a negative crossover in coming days.
Going by pattern analysis, there is formation of a sharp
wedge on the Close charts. This may temporarily cause some short term
disruption to the current up move and keep markets in range bound consolidation
with minor corrective declines.
All and all, as mentioned the current consolidation phase is
likely to continue. Even if we see a positive opening, the Markets will still
remain vulnerable to minor corrective declines from higher levels. The zones of
9380-9400 are expected to act as major pattern supports. Any breach of these
levels will keep the Markets under corrective activity for some more time. We
reiterate maintaining stock specific cautious approach to the Markets.
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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