MARKET OUTLOOK FOR WEDNESDAY, SEP 06, 2017
The Markets had a relatively stable session on Tuesday as it
recouped some of its previous session’s losses and ended the day with modest
gains of 39.35 points or 0.40%. The better part of the session was that the up
move has come on back of fresh longs and not just on short covering. This has
put the Markets on a relative better footing. We expect a quiet to modestly
positive start to the session on Wednesday and expect the NIFTY to progress
gradually towards the 10,000-mark again if no untoward developments happen
overnight.
The levels of 10025 and 10150 shall act as immediate
resistance levels for the Markets. The supports come in at 9910 and 9850 zones.
The Relative Strength Index – RSI on the Daily Chart stands
at 54.7572 and it is neutral showing no divergence against the price. The Daily
MACD is bullish as it continues to trade above its signal line. No significant
formations were observed on Candles.
As evident from the Charts, the NIFTY continues to crawl
within the rising channel that it has been trading in over past couple of
months. It is likely that it will maintain its short term positive momentum
given that it is trading above its short term 20-DMA.
All and all, if there are no incremental geopolitical
tensions overnight, we expect the Markets to continue with its up move. No
major downsides are expected and we may expect the Markets to continue it’s up
move and consolidate once again at higher levels. While refraining from shorts,
we continue
to recommend making selective purchases while guarding profits at higher
levels.
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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