MARKET OUTLOOK FOR THURSDAY, SEP 28, 2017
The Indian Equity Markets had a thoroughly disappointing session
the benchmark NIFTY50 continued its slide breaching the important support
levels of 100-DMA. It ended the day losing 135.75 points or 1.38%. We enter the
expiry day of the current derivative series on Thursday and there are high
chances that we see volatility remaining ingrained in the session. The previous
immediate low of 9685 and 9750 zones will be critical to watch out for. We
believe that overall weakness may persist but within that a possibility of a
technical pullback too cannot be ruled out. The behavior of the Markets
vis-à-vis the levels of 9685 will provide cues for coming days. In all
probability, the Markets have developed a large trading band for itself.
The levels of 9770 and 9860 will play out as immediate resistance
levels for the Markets. Supports come in at 9685 and 9600 zones.
The Relative Strength Index – RSI on the Daily Chart is 33.6631.
It has marked a fresh 14-period low which is Bearish but do not show any
divergence against the price. The Daily MACD stays bearish while trading below
its signal line. An Engulfing Bearish Candle has emerged. Usually this too
attempts to find a base near current supports. However, this is just a
potential indicator and needs confirmation on the following day.
The Pattern analysis shows the NIFTY trading below its 100-DMA but
stays within its filter and above its previous immediate low of 9685. If it
sees a technical pullback, it may form a broad trading range in forma of a
rectangle for itself and is expected to oscillate between the levels marked.
Any breach below 9685 might bring in more weakness.
There are chances that though broad based weakness might persist,
we might see a mild attempt to pullback by the Markets. Also, behavior of the
Markets against the level of 9685 will be critically watched. We recommend
refraining from creating shorts as there is evident creation of large short
positions in the system. It is advised to remain light on the overall exposure
and refrain taking aggressive positions on either side.
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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