MARKET OUTLOOK FOR TUESDAY, AUG 29, 2017
The Markets had a relatively stable session on Monday as the
benchmark NIFTY50 opened higher on expected lines but traded in much capped
range during the day. Though NIFTY ended the day with net gains of 55.75 points
or 0.57%, it has still continued to resist to its short term 20-DMA. We expect
a quiet opening on Tuesday and it would be important for the Markets to move
past 20-DMA to avoid any short term weakness from creeping. Though Monday was
less volatile, we cannot rule out volatility in coming days as we approach the
expiry of current derivative series.
The levels of 9930 and 10075 may act as immediate resistance
levels. Supports come in at 9880 and 9850 levels.
The Relative Strength Index – RSI on the Daily Chart is
53.4063 and continues to remain neutral showing no divergences. The Daily MACD
too stays bearish while trading below its signal line but it continues to move
sharply towards positive crossover. A rising window has emerged on Candles.
Though this requires confirmation, it usually implies the continuation of the
uptrend on the following trading day.
The pattern analysis continues to show Markets comfortably
placed within the upward rising channel as evident on the Charts. It would be
important for the Markets to move past the short term 20-DMA which it has
resisted in the previous session.
Overall, as of now, there are no signs that point towards
any immediate weakness returning on the Charts. The Markets may remain volatile
due to rollovers in coming days but we strictly recommend not to initiate any
major short positions in the Markets. On the long side, only modest positions
may be taken until we see through the expiry. Overall, cautiously positive
approach is advised for the day.
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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