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
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