MARKET OUTLOOK
FOR FRIDAY, NOV 17, 2017
After more than a week of continuous downsides, the Indian
Equities saw a huge spate of short covering as the benchmark NIFTY50 ended the
day with decent gains of 96.70 points or 0.96%. Two important things happened
on Thursday’s session. First, the Markets validated once again the support
levels of 50-DMA, and second; it crawled back above the 10180-10200 zones once
again further validating those support levels. Going into trade on Friday, we
expect this pullback to continue at least in the initial trade. It would be
extremely important to see that the short covering that we saw in the previous session
gets replaced with fresh buying. This would be essential for the Markets to
build up on this technical pullback.
The levels of 10245 and 10280 will act as immediate
resistance levels for the Markets. Supports come in at 10180 and 10125 zones.
The Relative Strength Index – RSI on the Daily Chart is 48.9354
and it remains neutral showing no divergence against the price. The Daily MACD is
still bearish as it trades below its signal line. No significant formations are
seen on Candles.
The pattern confirms the level of 50-DMA as valid support at
Close levels. The levels of 10180-10200 are now once again expected to continue
to extend its support if the Market chooses to consolidate once again.
All in all, we expect this pullback to continue at least in
the initial trade. As mentioned earlier, it would be important that the short
covering that was seen in the previous session gets replaced with fresh buying.
If this happens, we will see this technical pullback sustaining. We need to
approach the Markets with caution and at the same time, continue to utilize any
corrective moves once again to make select purchases. The undercurrent of the
Markets which is buoyant remains intact so long as the Markets are able to
defend the 50-DMA at Close levels. A cautiously positive outlook 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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.