Wednesday, July 26, 2017

MARKET OUTLOOK FOR WEDNESDAY, JULY 26, 2017

MARKET OUTLOOK FOR WEDNESDAY, JULY 26, 2017
We had categorically mentioned that testing the psychological mark of 10,000 can induce correction in the Markets. Keeping in line with this analysis, the Markets did touch this mark but soon pared nearly 60-odd points from the high levels of the day and ended the day flat with negligible loss of 1.85 points or 0.02%. As mentioned in our yesterday’s note, we do not expect a significant move beyond 10,000 mark too soon. We expect a quiet start tomorrow and also expect a ranged consolidation to continue. Being the penultimate day of the expiry,  we also expect rollovers induced volatility to persist.

The levels of 10010 and 10045 may act as immediate likely resistance levels. The supports come in at 9910 and 9840 levels.

The Relative Strength Index – RSI on the Daily Chart is 70.6492. Though it remains neutral showing no divergences, RSI remains modestly overbought. The Daily MACD stays bullish while trading above its signal line.

Pattern analysis show that though the Markets continue to trade comfortably above the rising trend line, some amount of consolidation or range bound correction cannot be ruled out with this trend line acting as strong short term support.

Overall, the Bollinger bands remain nearly 49% wider-than-normal. This is most likely to prevent any significant upside and may force the NIFTY to remain in a range. Further rollovers too are likely to induce some volatility in the trade. With the lead indicators modestly overbought, we continue to reiterate a cautious view on the Markets 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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