MARKET OUTLOOK FOR FRIDAY, SEP 01, 2017
With limited dosage of volatility the benchmark NIFTY50
oscillated in a 40-odd point capped range on either side on the expiry day of
the August series and ended the day higher gaining 33.50 points or 0.34%. In
all likelihood, we expect a modestly positive start to the Markets on Friday
and expect the up move to continue. A minor positive sign is that the NIFTY has
ended the day a notch above the short term 20-DMA and we may see the rally
gaining some more strength. In event of any consolidation, the 50-DMA will
continue to act as sacrosanct support.
The levels of 9950 and 9985 will act as immediate resistance
to the Markets. Supports come in at 9850 and 9285 levels.
The Relative Strength Index –RSI on the Daily Chart is 53.4153 and it has marked its
highest value in last
14-days which is bullish. The Daily MACD remains bearish trading below its signal
line but continues to move towards positive crossover. A long lower shadow has
emerged on Candles and this is potentially bullish as it has appeared near
immediate support levels.
The pattern analysis shows that the Markets forming a small
congestion zone but at the same time it continues to trade comfortably within
the upward rising channel. In the process, it has ended a notch above 20-DMA
and this can be a short term positive sign for the Markets.
We reiterate and strongly advice to refrain from creating
any short positions in the Markets. We believe that the immediate set up in the
Markets has a bullish undertone and unless some critical support levels are
breached, selective purchases should be made with any available downside.
Overall, while maintaining a positively cautious view on the Markets, stock
specific action can be expected.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.