MARKET OUTLOOK FOR TUESDAY, SEP 19, 2017
The Indian Equity Markets had a better-than-expected session
on Monday as it opened strong and ended the day with net gains of 67.70 points
or 0.67%. However, the benchmark NIFTY50 saw this up move on back of sharp
short covering. Though we may expect a stable start to the Markets on Tuesday,
there are ample signs that the Markets may not see a sustainable up move even
if it continues to post intermittent lifetime highs. The zones of 10150-10170
still need to be comprehensively breached and while it happens, we cannot
ignore the signs of weariness that are appearing on the Charts.
The levels of 10170 and 10265 will act as immediate
resistance levels for the Markets. Supports come in at 10080 and 10010 levels.
The Relative Strength Index – RSI on the Daily Chart is 66.2278
and it has reached its highest value in last 14-days which is bullish. No
divergence is seen against the price. The Daily MACD continues to stay bullish
while trading above its signal line. A Rising Window” that occurred on
the Candles may result into some continued up move on Tuesday.
The pattern analysis show the Market slowly inching up
towards the upper zone of the rising channel that it has been trading in. The
intraday bands are getting shorter as the NIFTY has remained in a very narrow
intraday range over past couple of days.
There are few things that warrant our attention and requires
the Market Participants to be cautious about. The NIFTY PCR (Put to Call Ratio)
remains at its highest in recent times. The VIX remains at its lowest levels which
signals high amount of complacency of the participants. Further, the previous
up move has resulted out of a short covering as it has come with reduction in
Open Interest. We recommend remaining extremely cautious and adopt stock
specific outlook on the Markets.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.