MARKET OUTLOOK FOR FRIDAY, SEP 15, 2017
The Indian Equity Markets consolidated on expected lines of Thursday
as the benchmark Index NIFTY50 remained in a narrow range and lacked any
specific directional bias. The NIFTY ended the day with negligible gains of
7.30 points or 0.7%. On Friday, we expect a quiet start
and expect the NIFTY to continue to consolidate. Though there may not be any
major downsides, the zone of 10130-10150 will continue to pose stiff resistance
to the Markets. In the coming days, we expect the Markets to oscillate in a
defined range. Though any major downsides and structural breach are unlikely,
NIFTY will also not show any runaway rise significantly beyond its life time
highs.
The levels of 10140 and 10195 will continue to act as
immediate resistance levels for the Markets. The supports will come in at 10050
and 9975 zones.
The RSI—Relative Strength Index on the Daily Chart is
62.3038 and it stays neutral showing no divergences against the price. The
Daily MACD is bullish while trading above its signal line but it has flattened
its trajectory.
The pattern analysis show that the though the Markets
continue to remain the multi-month upward rising channel, of late it has been
struggling in a very narrow range near the upper Bollinger band. The major
supports that the Markets have are the 20-DMA and the 50-DMA which remain in
extremely close vicinity.
Overall, we feel that some consolidation is likely to
continue with some more amount of volatility remaining ingrained in it. High levels of PCR (Put to Call Ratio) and some signs of
fatigue on the lead indicators are expected to keep Markets under check and
keep them in a broad range bound consolidation. In the given circumstances,
while continuing to make purchases with all dips, vigilant protection of
profits will be necessary as well at higher levels.
Milan Vaishnav, CMT, MSTA
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
Society of Technical Analysts (STA),
UK
+91- 70164-32277
/ +91-98250-16331
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