Friday, July 14, 2017

MARKET OUTLOOK FOR FRIDAY, JULY 14, 2017

MARKET OUTLOOK FOR FRIDAY, JULY 14, 2017
Global positivity fueled by Federal Reserve’s Chair Janet Yellen’s comments coupled with favorable macro economic data pushed the buoyant Markets even higher as the benchmark NIFTY50 scaled yet another fresh high and ended the day with decent gain of 75.60 points or 0.77%. On Friday, a positive start yet again is expected. Despite the overbought nature of the Markets which certainly compels the participants to remain vigilant at these levels, buoyancy is likely to persist in the Markets going ahead.

The levels of 9935 and 9960 are likely to act as resistances ahead as we remain in the uncharted territory, supports will come in at 9820 and 9750 zones.

The Relative Strength Index – RSI on the Daily Chart is 76.2165 and it has marked a fresh 14-week high which is bullish. However, it trades in overbought territory. The Daily MACD stays bullish while trading above its signal line. On Candles, a rising window occurred. This is essentially a gap which indicates buoyant uptrend to persist and continue.

Pattern breakout is seen as the Markets continue to chart in uncharted territory marking higher tops and higher bottom in a rising channel. It is approaching the measuring implications of the breakout that occurred from 8900-8950 levels but it still has some distance to travel.

The Markets are overbought and the lead indicators remain in overbought territory. This certainly warrants caution from the Market participants but it is much evident from the F&O data and the overall structure that the buoyancy is likely to persist. We reiterate to avoid shorts at any levels, remain stock specific and continue to protect profits at higher levels vigilantly while we chase the momentum.

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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