MARKET OUTLOOK FOR THURSDAY, AUG 31, 2017
Markets recouped most of its previous day’s losses as the
benchmark NIFTY50 ended the session on Wednesday with net gains of 88.35 points
or 0.90%. If some critical assessments of such behavior are to be made, then
the NIFTY has re-validated the levels of 50-DMA as its immediate support fourth
time. To add further to that, the levels of 50-DMA has almost become a proxy
trend line for the Markets as it remains in very close vicinity of the lower
end of the rising channel that the Markets trade in. In order to successfully
reverse the move, NIFTY will have to move past 9900-mark which is the short
term 20-DMA.
The levels of 9900 and 9985 will play out as potential
resistance levels for the Markets. Supports come in at 9820 and 9770 zones.
The Relative Strength Index – RSI on the Daily Chart is
51.3676 and it continues to remain neutral showing no divergences. Daily MACD
stays bearish while trading below its signal line. No significant formations were
observed on Candles.
The pattern analysis shows that the Markets have once again
bounced back a bit from the lower support line of the channel that it has been
trading in. While doing so, it has also taken support at its 50-DMA once again
and has kept that support intact. However, it has continued to resist to its
short term 20-DMA.
We enter the expiry day of the current derivative series and
therefore, we cannot rule out volatility that may be seen ingrained in the
session. Also, we cannot still throw caution wind as the NIFTY still resists at
the 20-DMA. We still recommend exercising caution but with positive bias as the
Markets have fair chances of moving past its 50-DMA and resume its up move
within the range.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Member:
CMT Association (Formerly known as 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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