MARKET OUTLOOK FOR THURSDAY, MAY 04, 2017
Very much on expected lines, the Markets headed nowhere once
again as the benchmark NIFTY50 ended the day on a flat note losing a nominal
1.85 points or 0.02%. The session remained in very narrow range and Markets
continued to remain under classical consolidation. On Thursday, we expect NIFTY
to continue to remain under consolidation and at the same time also continue to
exhibit positive bias. No runaway rise is expected as Markets continue to deal
with multiple pattern resistances.
On Thursday, the levels of 9350 and 9385 will continue to
pose resistance to any up move. Supports come in at 9260 and 9235 levels.
The Relative Strength Index – RSI on the Daily Chart is
63.6999 and remains neutral showing no divergences against the price. The Daily
MACD still remains bullish while trading above its signal line. No significant
formations are observed on Candles.
The pattern analysis continues to paint a buoyant picture.
The NIFTY broke out from the corrective channel that it had formed after
marking fresh highs. After breaking out from the corrective channel, the NIFTY
is undergoing consolidation and is moving sideways. The fact that there is no
major correction and retracement and just a sideways movement shows the
buoyancy of the undercurrent.
All and all, we reiterate to avoid any fresh shorts as there
are no signs of any reversal of trend. Also, there are no signs of any major
downsides as well. However, we expect positive consolidation to continue and
intermittent profit taking bouts will continue to exist. While remaining highly
stock specific until a fresh high is marked by NIFTY, positively cautious
approach is advised for the day.
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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