MARKET OUTLOOK FOR MONDAY, SEP 11, 2017
The Markets had a relative quiet session on Friday as after
opening on a higher note, it remained in a range and ended the day with modest
gain of 4.90 points or 0.05%. The benchmark NIFTY50 has continued to remain
under stiff congestion area and it continues to consolidate. On Monday, we
expect a modestly positive start to the Markets. It is important to note that
the NIFTY has added lot of short positions in last couple of days. Further,
given the fact that the NIFTY has been trading in a congestion area for quite a
long time, it is due that it makes a decisive move on either side in coming
days.
The levels of 9930 and 10060 will act as immediate
resistance levels while supports will come in at 9905 and 9850 zones.
The Relative Strength Index – RSI on the Daily Chart is
53.4201 and it remains neutral showing no divergences against the price. Daily
MACD still continues to remain bullish as it trades above the signal line. No
significant formations were observed on Candles.
The pattern analysis show the NIFTY trading well within the
rising channel that it has formed over last couple of months. However, a stiff
congestion area has been formed and there are indications that NIFTY is likely
to make a decisive sharp move over coming days.
As of today, the Index continues to trade above all of its
moving averages. Further, there is evidence of fresh shorts in the system as
the premium in the September series contracted noticeably. With the Index
currently above all of its moving averages and no evidence of any structural
weakness on the Charts, there are bright chances that the Markets continue to
maintain positive bias in coming days. We continue to recommend making select
purchases with even corrective move that the Markets make.
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
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