MARKET OUTLOOK FOR FRIDAY, JULY 28, 2017
The benchmark NIFTY50 ended unchanged with losing just 0.10
points at Close levels, it came off over 110-odd points from the high point of
the day. This behavior of the Markets holds significance. Though the expiry on
Thursday did not remain as volatile as expected but the high point of the day
of 10114 is now likely to act as immediate top for the Markets. Our expectation
of profit taking coming in has turned into fact. For Friday, and for next
couple of days to come, the levels of 10114 has now become an immediate top for
the Markets.
Going into Friday, the levels of 10045 and 10114 will act as
stiff resistance levels for the Markets. Supports come in at 9975 and 9910
zones.
The Relative Strength Index – RSI on the Daily Chart 73.6489
and it continues to show Bearish Divergence against the price. The Daily MACD
still remains bearish while trading above its signal line. No significant
formations are observed on Candles.
Overall, we had mentioned in our previous note that any up
move is all likely to be met with profit taking bouts. On Friday, and for
coming couple of days, we see this continuing to happen. The overbought nature
of the markets coupled with evident fatigue on the lead indicators is likely to
force the Markets for some time into consolidation. We reiterate that purchases
should be kept very limited and all up moves should be utilized to protect
profits on existing positions.
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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