MARKET OUTLOOK FOR MONDAY, SEP 04, 2017
The Markets ended the session on Friday on a positive note
as the benchmark NIFTY50 gained 56.50 points or 0.57%. The positive closing on
Friday had some technical significance as well. In the previous days, not only
the NIFTY has affirmed and re-affirmed the 50-DMA as its immediate major support,
it has also moved past its short term 20-DMA on Friday. We expect a positive
start to Monday and despite some possible consolidation at higher levels, we
expect the Markets to maintain a overall positive bias.
The levels of 10040 and 10085 will act as immediate
resistance levels for the Markets. Supports come in at 9950 and 9910 zones.
The Relative Strength Index – RSI on the Daily Chart is 56.7249
and it has marked a fresh 14-period high which is bullish. It does not show any
bullish or bearish divergence. The Daily MACD reported a positive crossover and
it is now bullish as it trades above its signal line. Candles do not show any
significant formations on the Charts.
The pattern analysis reveals an encouraging picture. As it
is evident on the Charts, the NIFTY remains comfortably placed in the rising
channel that it has been trading in. Also, it has reaffirmed the levels of
50-DMA as its sacrosanct support, it has also moved past the short term 20-DMA.
Friday’s session has also seen NIFTY September futures adding
10.42 lakh shares or 6.57% in Open Interest. This indicates fresh longs in
NIFTY. The closing of the NIFTY above 20-DMA indicates likely return of short
term momentum in the Markets. Though consolidation at higher levels not ruled
out, we expect the Markets to maintain positive bias. Any consolidation or
minor dips should be continued to make fresh purchases.
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
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