MARKET OUTLOOK FOR FRIDAY, JULY 21, 2017
The Markets remained in a corrective mood much on the
expected lines as the NIFTY declined to end the day with a modest loss of 26.30
points or 0.27%. We continue to observe absence of buying and every pullback
being attributed to short covering and this factor will weigh on the sessions
going ahead as well. We expect a flat start on Friday and we will see the
Markets remaining range bound and oscillate within a defined range.
Friday will see the levels of 9920 and 9945 playing out as
resistance levels for the day. Supports come in at 9860 and 9810 zones.
The Relative Strength Index – RSI on the Daily Chart is 65.3932
and it remains neutral showing no divergences against the price. Daily MACD
remains bullish but is seen losing its momentum and sloping towards a negative
crossover is such consolidation is prolonged. On Candles, a Dark Cloud
occurred. This implies weakness and distinct loss of momentum on the Daily
Charts.
Pattern analysis shows that NIFTY comfortably rules above
the rising trend line. It is much expected that though consolidation may
continue, this trend line is expected to work out as support. Any breach below
this will imply more weakness for the NIFTY.
Overall, there are distinct signs that consolidation may
continue. The 41.57% wider-than-normal Bollinger bands are also likely to
prevent any runaway rise and may keep NIFTY remaining in a defined range for
some time. We reiterate that though shorts may be avoided, long exposures too
should be kept modest. 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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