Wednesday, August 2, 2017

MARKET OUTLOOK FOR WEDNESDAY, AUG 02, 2017

MARKET OUTLOOK FOR WEDNESDAY, AUG 02, 2017
The Markets headed nowhere for the entire session on Tuesday and continued to resist to its previous high of 10114. It was the sharp up move in the last 30-minutes of the trade that saw the benchmark NIFTY50 testing new highs once again. The NIFTY ended with net gains of 37.55 points or 0.37%. Though we expect a quiet opening once tomorrow, some upticks still cannot be ruled out. However, two major points are there that warrants our attention. First, the NIFTY has been rising with a declining market breadth and second; the up moves have come with rising VIX which has risen over 8% in previous two sessions.

Wednesday will see the levels of 10150 and 10210 playing out as immediate resistance levels for the Markets. The supports come in lower at 10025 and 9960 zones.

The Relative Strength Index – RSI on the Daily Chart is 77.8631 and it has reached its highest value in last 14-days which is bullish. The Daily MACD stays bullish while trading above its signal line. On the Candles, no significant formations were observed.

Pattern analysis shows the NIFTY continuing to remain in a sharp rising wedge formation. Normally a sharp and volatile move occurs in the opposite direction of the primary trend. In this event, the rising trend line drawn from 9200 levels is expected to act a support over coming days.

Overall, Markets are also expected to show volatile reaction to the Credit Policy Review coming up tomorrow. Rate decrease of 25bps is expected but Markets will just need a reason to react in a volatile manner. Also, the pattern analysis read along with F&O data suggest that some amount of corrective move is long overdue. Even in case of continuing upticks, extremely high degree of caution is 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 

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.