MARKET OUTLOOK FOR MONDAY, JULY 17, 2017
Markets saw a negligible decline on Friday’s session after
it pulled back from the low point of the day to end the session with minor
losses of 5.35 points or 0.05%. Though the Markets had a buoyant week and has
been scaling fresh highs every other day, it is time for the momentum chasers
to remain very cautious not to get caught off-guard as the Markets have made
itself vulnerable to profit taking bouts from higher levels. A flat opening is
expected on Monday and overbought nature of the Market demand caution from
momentum chasers.
The levels of 9915 and 9940 will act as immediate resistance
levels for the markets. Supports come in much lower at 9820 and 9770 zones.
The Relative Strength Index – RSI on the Daily Chart is 75.3711
and it remains neutral showing no divergences against the price. The Daily MACD
stays bullish while trading above its signal line. No significant formations
are observed on Candles.
Pattern analysis clearly shows the NIFTY trading once again
above the rising trend line drawn from 9200-levels. Just as it was the case
before, in event of any correction, this trend line is likely to act as
support.
Overall, while not disputing the intact up trend in the Markets,
the lead indicators remain overstretched and it is long overdue that the
Markets take a breather. It would be healthy for the Markets if it takes a
breather and consolidates. We recommend approaching Markets with caution and
also recommend having modest exposures in the Markets while protecting
positions at higher levels vigilantly.
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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