MARKET OUTLOOK
FOR FRIDAY, NOV 24, 2017
It was for the fourth day in a row that the benchmark
NIFTY50 desist from giving a clear upward breakout from the 10346-10365 levels
and continued to consolidate. It ended with a modest gain of 6.45 points or
0.06% on Thursday after seeing a smart recovery from the low point of the day.
Markets not retracing from the current levels is certainly a sign of strength.
However, going into trade on Friday, we will still have to watch 10365 level
until it is breached comprehensively on the upside.
The levels of 10365 and 10395 will continue to pose
resistance for the fourth day in a row. The supports come in at 10280 and 10200
zones.
The Relative Strength Index – RSI on the Daily Chart is 58.2127
and it continues to remain neutral showing no divergences against the price.
The Daily MACD continues to trade below its signal line and it remains bearish.
Candles continued to portray gross indecisiveness on part of the Market participants.
The pattern analysis confirms the intermediate resistance of
10345-10365 zones. However, with the creation of each marginal high, the
Markets are currently escaping to formation of a definitive lower top. The
NIFTY has pulled back after suffering a 100% throwback and the breaching of the
10365 comprehensively on the upside will see it scaling further highs.
All and all, there is no doubt that the Markets have
continued to display some inherent strength and it is not declining after repeatedly
testing its resistance zones of 10345-10365 zones. However, until those levels
are breached on the upside comprehensively, we will not see any meaningful up
move. Also, unless the NIFTY moves past those levels, we cannot under estimate
the potential resistance in this area just because the NIFTY is not drifting
down much. Over all, for a meaningful up move, we will have to wait for the
NIFTY crossing this important immediate hurdle and until this happens, as we
have been doing over past several sessions, should approach the Markets with a
highly cautious stock specific view while protecting profits vigilantly 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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