MARKET OUTLOOK FOR WEDNESDAY, SEP 13, 2017
While trading perfectly on analyzed lines, the Markets ended
yet another day on Tuesday on a buoyant note. The benchmark NIFTY50 opened
strong, and got even stronger as the day progressed and ended the session on a
strong note gaining 87 points or 0.87%. The structural set up continues to
remain favorable and the Indian Markets remain technically better poised to
continue with the present momentum. We expect a positive opening on Wednesday
and expect a resilient trade. The Index is likely to continue to advance and
later consolidate once again at higher levels.
Wednesday will see the levels of 10130 and 10215 as a
possible resistance levels. The supports will come in at 10030 and 9950 levels.
The Relative Strength Index – RSI on the Daily Chart is
63.1246 and it has marked a fresh 14-period high which is bullish. The Daily
MACD continues to trade above its signal line and remains bullish as well.
Another rising window has occurred on the Candles. This is essentially a gap
and strongly implies possibilities of continued up move.
The pattern analysis has confirmed the 50-DMA as the
immediate most important pattern support for the Markets. The NIFTY
consolidated around those levels and has strongly rebounded from that support
zone.
All and all, the F&O data too indicate that there are
strong chances that the Markets continue with its rally on Wednesday. It is
very much likely that the Index may try and test its previous highs and
attempts to move past them. In the same breath, we also expect that some amount
of profit taking or some ranged consolidation too cannot be ruled out. We
expect stock specific out-performance to continue and recommend continuing
making fresh purchases on select sectors. Positive outlook is advised for
today.
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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