MARKET OUTLOOK FOR MONDAY, AUG 28, 2017
Markets ended flat on Thursday after gaining just 4.55
points or 0.05% as the benchmark NIFTY50 remained extremely range bound
throughout the day. Markets will open after a long weekend and on Monday; there
are all chances that the Markets see a positive opening. NIFTY had
under-performed its Asian peers since at least 2 trading days. Friday had seen
Asian Markets trading much stronger and there are all chances that we may see
NIFTY adjusting its levels. However, key thing to see would be to see whether nor not we are able to sustain the
good opening that we are likely to get.
The levels of 9920 and 9965 are likely resistance levels for
Monday. Supports exist at 9940 and 9685 levels.
The Relative Strength Index – RSI on the Daily Chart is
49.5173 and it is neutral and shows no divergence against the price. The Daily
MACD is still bearish as it trades below its signal line. However, it is
sharply moving towards reporting a positive crossover. No significant formations
were observed on Candles.
The pattern analysis very clearly show that that NIFTY has
managed to stay within the upward rising multi-month channel that it has been
trading in as very much evident on the Charts. Further to that, the levels of
50-DMA have been defended so far and the levels of 9685 continue to remain
intact as the immediate major pattern support.
Overall, we see a most-likely stronger opening on Monday.
However, key would be to sustain it. In most likelihood, we will see the
Markets in a capped range and the bias is likely to remain positive. We
reiterate to avoid creating any short positions as short traps may occur. In
the same breadth, we continue to recommend protecting profits as well with each
higher up move. All downsides may be continued to be utilized to make select
purchases. Cautious optimism is advised for the day.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg.
No. INH000003341)
Member:
CMT Association (Formerly Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
Associate International Member:
Society of Technical Analysts, STA (UK)
+91-70164-32277 / +91-98250-16331
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