MARKET OUTLOOK FOR MONDAY, OCT 09, 2017
Indian Equity Markets continued to display its buoyant undertone
as the Friday’s session saw a better-than-expected show while the benchmark
NIFTY50 ended on a strong note gaining 91 points or 0.92%. In view of the
Friday’s session, the Index has crawled back once again above the 50-DMA mark
and has attempted to throw itself back into the upward rising channel that it
has been trading in over past couple of month. While a quiet start to the
Markets is expected on Monday, the key would be to see if it continues to
successfully survive above 50-DMA levels. The VIX has once again dropped to the
lowest values in recent times.
Monday is expected to see the levels of 10030 and 10075 playing
out as resistance area for the Markets. Supports come in at 9945 and 9910
zones.
The Relative Strength Index – RSI on the Daily Chart is 53.6557
and it remains neutral showing no divergence against the price. The Daily MACD
still remains bearish while it trades below its signal line.
The pattern analysis depict a positive development that the Index
has once again crawled back above its 50-DMA has averted a immediate loss of
momentum. Further, it has also attempted to trade inside the upward rising
channel that it has breached on the downside couple of days back.
Overall, if we take a broader view of the Markets, though the
immediate creeping in of weakness seems to have been averted, it would be
important for the Markets to sustain above the 50-DMA. This will keep the short
term momentum intact. Markets are little
overbought on Stochastic and the returning of the VIX to its lowest levels in
recent times once again indicate that we might see volatility creeping into the
Markets once again. We reiterate avoiding shorts and continue making select
purchases and use all up moves to protect profits.
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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