MARKET OUTLOOK FOR TUESDAY, OCT 10, 2017
Indian Markets on Monday witnessed a very range bound session as
the benchmark NIFTY50 moved in a much capped range all throughout the day and
closed with minor gains of 9.05 points or 0.09%. The session saw the Index
heading nowhere and trading in a directionless manner and in much tentative
mode. Tuesday will once again see a modest opening but we expect the Markets to
trade in a range bound manner with positive bias. It would be critical to see
that the NIFTY continues to maintain itself above the 50-DMA mark.
Tuesday will see the levels of 10030 and 10055 playing out as
immediate resistance levels. The levels of 9945 and 9910 will act as support
area for the Markets.
The Relative Strength Index – RSI on the Daily Chart is 54.2643
and it continues to stay neutral trading above its signal line. The Daily MACD
is still bearish while it trades below its signal line. However, it is moving
sharply towards reporting a positive crossover. In event of no downsides, we
may see this indicator reporting a positive crossover. On the Candles, a Doji
star has occurred since it has gapped above the previous candle. This may
potentially keep the Markets momentarily subdued. However, this requires
confirmation on the following day.
Pattern analysis shows that the NIFTY has so far managed to keep
its head above 50-DMA. Also, it trades slightly in the upward rising trend line
and therefore is inside the upward rising channel. However, given the rising
nature of the trend line, this critical level of support / resistance too is rising higher each
day. Therefore, it is imperative and
extremely important for the Markets to move up from current levels to go back
comfortably into the upward rising channel.
All in all, the tentative nature of the Monday’s session may
remain a slight worry. As of now, as evident from the F&O data, the under
current remains buoyant and we may expect the Markets to continue with its up
move after a brief deliberation. However, in the process, sustenance of the
NIFTY above 50-DMA will continue to remain of critical importance. Cautiously
positive stock specific approach is advised 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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