MARKET OUTLOOK FOR THURSDAY, JULY 13, 2017

MARKET OUTLOOK FOR THURSDAY, JULY 13, 2017

Markets continued to scale fresh highs amid tentative mood as the benchmark NIFTY ended yet another day with gains ending the day with rise of 30.05 points or 0.31%. We expect a positive opening on Thursday and we see that Markets will continue to attempt to move up on a very cautious note. We are likely to see global markets reacting positively to Yellen’s testimony wherein it was indicated that Fed would need to keep gradually raising its benchmark interest rate over next few years, but that rate won’t need to rise to levels seen in previous cycles. We see Indian Markets too receiving this positively.

The levels of 9840 and 9900 are likely resistances ahead of us. The supports come in at 9770 and 9725 zones.

The Relative Strength Index – RSI on the Daily Chart is 72.1126. Though it trades in overbought trajectory, it has continued to mark fresh 14-period high which is bullish. The Daily MACD stays bullish while trading above its signal line.

The pattern analysis show NIFTY moving past the resistance of a rising trend line successfully after a brief breach on the downside. This rising line will continue to act as support for the Markets in the immediate short term.

All and all, we are set to see a positive opening but at the same time, we cannot discard the fact that we need to continue to approach the Markets with caution given its overbought nature. We will see buoyancy being reflected in the session but it is recommended that the Markets should be approached with caution and each fresh purchase should be monitored in a very vigilant manner going ahead.

Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)

Member:
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA

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