Thursday, September 7, 2017

MARKET OUTLOOK FOR THURSDAY, SEP 07, 2017

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  /  +91-98250-16331  

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