MARKET OUTLOOK FOR FRIDAY, OCT 13, 2017
Thursday session remained quite buoyant on for the Indian Equities
as the benchmark NIFTY50 ended the day with a robust uptick ending the day with
net gains of 111.60 points or 1.12%. Session remained sideways for the most
part of the day and the bulk of the gains came in the last hour and half of the
trade. Going into trade on Friday, we expect this up tick to continue and in
the same breath, expect the Markets to face serious resistance going ahead from
here. We should not be surprised if the NIFTY continues with its up move on
Friday and also if it faces consolidation and some resistance at higher levels.
The levels of 10135 and 10180 will play out as major resistance
area for the markets. Support can be expected around 10040 and 9990 area.
The Relative Strength Index – RSI on the Daily Chart is 60.6702
and it has marked a fresh 14-period high which is bullish. Daily MACD trades
comfortably above its signal line and are bullish. A strong white body occurred
on Candles. Its emergence is important as it has occurred after a brief
consolidation of the Markets near its support area of 50-DMA.
Pattern analysis shows that the NIFTY is now not only well within
the upward rising channel but also now trades comfortably in the broad
rectangular trading range that the Markets have established. This is marked
using red dashed-lines on the Daily Charts. It should not come as a surprise if
the NIFTY spends some time in this broad trading range.
Taking a view specifically about Friday’s session, the NIFTY is
likely to see a modestly positive start. There will be sentimentally positive
reaction to the better-than-expected numbers from TCS. Other front line
companies are also due to report their numbers in next couple of days. All
these reactions are likely to keep the Markets volatile and in a trading range
trading with upward bias. Though we continue to reiterate completely avoiding
shorts, we also recommend exercising higher degree of caution as the NIFTY
attempts to once again attempt to test its previous highs. Overall, cautious
optimism is what we advise for the day.
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
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