MARKET OUTLOOK FOR TUESDAY, SEP 12, 2017
In our yesterday’s note, we had mentioned about distinct
possibilities of the benchmark NIFTY50 due for a decisive move. In line with
this analysis, the Markets opened positive, got stronger during the day on Monday,
and finally ended the day with decent gains of 71.25 points or 0.72%. In high
probability, we expect a positive start to the Markets on Tuesday and we expect
the Index to advance its up move. In absence of any negative overnight news
flow, the NIFTY will continue to the process of strengthening itself.
The levels of 10065 and 10150 will likely act as resistance
levels for Tuesday. Levels of 9965 and 9910 will act as likely supports.
The Relative Strength Index – RSI on the Daily Chart is
58.1749 and it does not show any divergence against the price. RSI has marked a
fresh 14-period high which is bullish. The Daily MACD stays bullish while
trading above its signal line. On the Candles, a rising window occurred. This
is essentially a gap on the upside and in most cases results into continuation
of uptrend.
The pattern analysis show that the Markets are attempting to
break out on the upside from the narrow consolidation area that it has formed
over past couple of days. While doing so, it continues to trade comfortably in
the upward rising channel that it has formed over past couple of months.
The Markets have attempted to up move and out of the
congestion zone with higher volumes. Further to this, the up move has come with
an increase in Open Interest which shows addition of fresh longs. We expect the
buoyant undercurrent to continue. It is expected that while the Markets make an
advance, it will also continue to see mild profit taking bouts at higher
levels. We recommend continuing to make select stock specific purchase while
remaining vigilant at higher levels. Positive outlook 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
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