Tuesday, October 24, 2017

MARKET OUTLOOK FOR TUESDAY, OCT 24, 2017

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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