MARKET OUTLOOK FOR THURSDAY, SEP 07, 2017
The buoyant intent of the domestic Equity Markets was
interrupted once again by geopolitical tensions around Korean peninsula as the
benchmark NIFTY ended the session on Wednesday with a modest loss of 36 points
of 0.36%. However, the show of the Indian Markets remained much resilient as
recovered nearly half of its early morning losses. Stock specific buying was
evidently seen in some distinct quarters as the recovery came along with
addition of Net Open Interest. On Thursday, we expect a positive start and
expect the markets to oscillate in a limited range with positive intent.
The levels of 9950 and 10045 will continue to act as
immediate resistance levels for the Markets. Supports come in at 9870 and 9850
levels.
The Relative Strength Index – RSI on the Daily Chart 52.1715
and continues to stay neutral showing no divergence against the price. The
Daily MACD stays bullish while trading above its signal line. No significant
formations were observed in NIFTY.
Markets have not made any significant and meaningful headway
and therefore, it continues to oscillate in a very narrow range. It has formed
a small congestion zone but continue to remain in a overall rising channel that
it has been trading in over past couple of months.
All and all, F&O data indicate that there will be
limited downsides in event of any negative global news flow and the Indian
Markets are likely to pose resilience to any major downsides. So long as the
NIFTY continues to trade above its short term 20-DMA and 50-DMA, any
sentimental dip is likely to attract buying from lower levels. Though the
Bollinger bands are getting narrower, they individually do not throw any
reading as of now. Given the overall structure of the Markets, we continue
expect some stability and expect NIFTY to show some modest upsides again and
consolidate at higher levels. Positive caution is advised for the day.
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
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