MARKET OUTLOOK FOR TUESDAY, AUG 22, 2017
The Indian Equity Markets had much worse-than-expected day
on Monday as the benchmark NIFTYT50 came under intense pressure in the second
half of the session and ended the day with net loss of 83.05 points or 0.84%.
Tuesday’s session will remain an acid test for the Markets. The NIFTY has
slipped below its 50-DMA which stands at 9792 but still remains within its
filter. The immediate previous low of the Markets i.e. 9685 will remain
extremely crucial levels to watch for. It would be desperately important for
the Markets to trade above 9685 levels failing which we will see more weakness
creeping in. A flat opening is expected on Tuesday and fresh shorts that are
seen are likely to lend support at lower levels.
The levels of 9790 and 9840 will act as immediate resistance
levels for the Markets. Supports come in at 9685 and 9610 levels.
The Relative Strength Index – RSI on the Daily Chart is
41.8403 and it remains neutral showing no divergence on either side against the
price. The Daily MACD continues to remain bearish while trading below its
signal line. No significant formations were observed on Candles.
The Pattern Analysis reveals that the NIFTY currently stands
at much precarious levels. It has closed at the lower support line of the
upward rising channel that it has been trading in. It would be critically
important for the Markets to hang on above this line or at least above 9685
level to avoid weakness from creeping in.
There are chances that we might see some weakness in the
initial trade. There are fresh shorts that are seen being built up but they may
not lend support immediately. Shorts might come into play at lower levels. We
recommend to strictly avoid any major exposure until the Markets show any
definite directional bias. It is advised to continue to remain extremely stock
specific and adopt highly cautious outlook 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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