Friday, September 29, 2017

MARKET OUTLOOK FOR FRIDAY, SEP 29, 2017

MARKET OUTLOOK FOR FRIDAY, SEP 29, 2017
The benchmark NIFTY50 had a volatile session on the expiry of the September series as it oscillated in a 70-point range and finally showed technical pullback in the second half of the session. It ended the day gaining 33.20 points or 0.34%. Two points that can be called important happened in the Thursday’s session. First, the NIFTY managed to hang on to the 100-DMA support at Close levels which stand at 9773; and second, in all probability, it has formed a large  trading channel that is marked with red line on the Charts while re-establishing the levels of 9685 as its immediate all important support. The Friday is expected to see a modestly positive start. In all likelihood, no major downsides are expected. On the other hand, no runaway rise may occur as well as we head into the extended weekend with Monday being a trading holiday.

Friday will see the levels of 9825 and 9860 playing out as immediate resistance levels for the Markets. Supports come in at 9730 and 9680 zones.

The Relative Strength Index – RSI on the Daily Chart is 36.7169 and it stays neutral showing no divergences against the price. Daily MACD stays bearish trading below its signal line. No significant formations were observed on Candles.

The pattern analysis shows that the NIFTY took a support at its previous lows of 9685 and rose nearly 90-odd points from there. It has re-established the supports of 9685 and has also created a broad rectangle trading channel until it is broken.

Overall, we still maintain a cautious view on the Markets. In all probability, the NIFTY may continue with its attempt to a technical pullback, it is likely to resist to the rising trend line – the channel – that I broke on the downsides. Unless there are specific negative news flows, no major downside is expected as well. All and all, we expect a session in a defined trading range and select outperformance in stocks will continue. While avoiding shorts, select buying can be done from lower 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  

No comments:

Post a Comment

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