MARKET OUTLOOK FOR MONDAY, AUG 21, 2017
Technically weak global environment along with the Infosys
saga weighed heavy on the Markets as the NIFTY ended the day with net loss of 66.75
points or 0.67%. Though the Markets ended with net loss, it did recover nearly
half of its intraday losses from the low point of the day. The opening on Monday
morning is likely to remain subdued. In this short 4-day working week, the
50-DMA levels which stand at 9790 will remain extremely important to watch out
for. These levels will have to be guarded at Close levels otherwise we may see
some temporary weakness creeping in once again in the Markets.
The levels of 9865 and 9930 will act as immediate resistance
levels for the Markets. Supports are expected to come in at 9790 and 9750.
The Relative Strength Index – RSI on the Daily Chart is 46.83
and it remains neutral showing no divergences against the price. The Daily MACD
stays bearish while trading below its signal line.
The Pattern Analysis shows the NIFTY trading in a broad
upward rising Channel as of today. The lower end of the channel coincides with 50-DMA
which remains in the close vicinity. These levels along with its filter will
remain critical for the Markets.
Overall, we do not expect the Monday’s session to see any
runaway up move in any case. The up moves will encounter resistance near the
20-DMA of the Markets which as of today remain a short-term resistance.
However, we do not rule out the Markets consolidating in a defined range.
Volatility will continue to persist and we will see it remaining ingrained in the
session. We recommend keeping activities to extremely stock specific level and
avoid any major directional exposures. Cautious outlook advised 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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