MARKET OUTLOOK FOR TUESDAY, OCT 24, 2017
The benchmark NIFTY50 swung nearly 90-odd points on either sides
as the session remained much volatile on the expected lines. It has not
achieved a clear breakout even as of now while continuing to resist to 10230-10250
zones. Going into trade on Tuesday, we can continue to expect these levels to
continue to pose resistance while the NIFTY creates an congestion area; or if
it returns back to the broad trading range. In either case, despite a bullish
set up, we cannot take the levels of 10230-10250 lightly until a clear breakout
is achieved.
The levels of 10230 and 10275 will act as immediate resistance
area for the Markets. Supports come in
at 10120 and 10030 levels.
The Relative Strength Index – RSI on the Daily Chart is 61.4757
and it remains neutral showing no divergences against the price. The Daily MACD
stays bullish while trading above its signal line but it is sharply narrowing
its trajectory. A Spinning Top on Candles further proves the state of indecisiveness
the Market participants are in.
While having a look at pattern analysis, it is evident that the
NIFTY has not yet achieved a clear breakout but it is definitely attempting to
achieve it. However, no sustainable rally would occur unless the NIFTY moves
past 10250 with conviction.
Overall, as mentioned often in our previous notes, the Markets
shall remain more sector and stock specific. No general out-performance will be
seen but we will see select stocks from select sectors like IT, INFRA, MEDIA,
etc. continuing to relatively outperform. We still continue to recommend
adopting highly stock specific approach to the Markets. All up moves should be
approached while remaining highly vigilant and protecting profits at higher
levels.
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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