Tuesday, September 5, 2017

MARKET OUTLOOK FOR TUESDAY, SEP 05, 2017

MARKET OUTLOOK FOR TUESDAY, SEP 05, 2017
Amid fresh geopolitical tensions, the benchmark NIFTY50 had a negative day on Monday as it ended the day losing 61.55 points or 0.62%. Despite the developments and the news flow that the Global Markets digested, it is important to note that even with the Monday’s decline, there is no structural damage to the Charts. On Tuesday, we  expect a quiet start to the Markets and in absence of any negative news flow, the favorable technical conditions is likely to take over and we can expect the Markets to trade with positive bias.

The levels of 9975 and 10030 will play out as likely resistance levels on Tuesday. Supports come in at 9860 and 9835 levels.

The Relative Strength Index – RSI on the Daily Chart is 52.3607 and it remains neutral showing no divergence against the price. The Daily MACD continues to remain bullish as it trades above its signal line. Though an engulfing bearish line has occurred on Candles, given its place for formation, it holds little or no significance in the present scenario.

If we have a look at pattern analysis, we see that the NIFTY still continues to trade comfortably in the upward rising channel that it has been trading over last couple of months. There is no structural triggers that point towards any major movements on either side.

If we have a broader view, the NIFTY not only trades above its 50, 100 and 200DMA, it also trade above its short term 20-DMA. This reading is enough to conclude that there are no triggers at present that triggers any major downsides. The levels of 50-DMA along with its filter continues to remain a major support to bank upon in the even the Markets consolidate. We expect the Markets to trade extremely stock specific and the select out-performance can be expected from broader indices. While strictly avoiding shorts, cautious optimism is advised for Tuesday.

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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