MARKET OUTLOOK FOR MONDAY, JULY 10, 2017
The Markets had a quiet session on Friday much on the
expected lines. The NIFTY oscillated in a 40-odd point range with not much
volatility and ended the day with a net loss of 8.75 points or 0.09%. We do not
see the Markets making much headway and the levels of 9700-9725 will remain
important levels to watch out for. No major up move is expected unless the
NIFTY breaches these levels in a convincing manner. We expect positive
consolidation to continue in the Markets.
Monday will see the levels of 9690 and 9725 acting as
immediate resistance levels for the Markets. Supports come in at 9610 and 9575
zones.
The Relative Strength Index – RSI on the Daily Chart is
60.9671 and it remains neutral showing no divergences against the price. The
Daily MACD has reported a positive crossover and it is now bullish trading
above its signal line. Occurrence of a Spinning Top indicates indecisiveness
and also signals loss of momentum at higher levels.
The pattern analysis show that the NIFTY has resisted
precisely to the rising trend line which it broke on the downside while it
corrected previous month. Further to this, the rising nature of the trend line
makes it even more difficult for the Markets for a clear breakout.
Overall, the structure of the Chart suggests that
consolidation is expected to continue. However, this is likely to turn out to
be a positive consolidation and downsides are likely to remain limited. We will
see clear sector specific rotations leading to stock specific out-performance.
Though we continue to maintain positive bias we continue to recommend
protection of profits at higher levels even with the underlying trend remaining
intact.
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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