MARKET OUTLOOK FOR FRIDAY, AUG 11, 2017
Amid greatly volatile session on Thursday, the benchmark
NIFTY50 continued to decline on the fourth day in a row while ended the day
with net loss of 87.80 points or 0.89%. In this process of volatility, perhaps
Markets have attempted to find a bottom for itself as it recovered nearly
50-odd points from the low point of the day on account of evidently heavy short
covering . In all probability, the levels of 50-DMA which stand at 9772 will be
extremely critical level to watch for. In larger probability, Markets will
attempt and find respite from the current corrective mode.
The levels of 9860 and 9885 will act as immediate resistance
levels for the Markets. The supports come in at 9770 and 9720 zones.
The Relative Strength Index – RSI on the Daily Chart is 43.0118
and it has marked a fresh 14-period low and this is bearish. However, it does
not show any bullish or bearish divergence against the price. The Daily MACD
stays bearish while trading below its signal line. A falling window has
occurred on Candles and this usually implies continuing weakness on the Charts.
The pattern analysis show the NIFTY breaking the short term
rising trend line pattern support and in event of any pullback, this line is
likely to act as resistance while the Markets attempts to find base at current
levels.
The important level that can act support at close level is
the 50-DMA at 9772 and any breach of this level will force the Markets into
intermediate bear trend. So long as Markets rule above the 50-DMA it will
attempt to find base and we may see some technical pullback. As of now, the
primary trend remains intact; but behavior of the Markets vis-à-vis the levels
of 50-DMA needs to be closely watched. Preservation of cash is advised until we
see Markets resuming its up move again.
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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