MARKET OUTLOOK
FOR MONDAY, NOV 20, 2017
The Indian Equity Markets reacted positively to the Moody’s
upgrade of India’s sovereign rating the benchmark NIFTY50 ended with gains of 68.85
points or 0.67%. Going to trade on Monday, the Markets find themselves in a
little tricky situation. We are not disputing the primary uptrend which remains
firmly in place, but if we speak of immediate short term, then we may see NIFTY
once again being forced into some consolidation. The Friday’s high is likely to
pose important resistance despite the long term setup remaining quite buoyant.
The levels of 10340 and 10365 will play out as immediate resistance
levels for the Markets. Supports come in at 10250 and 20190 zones.
The Relative Strength Index – RSI on the Daily Chart is 53.7832
and it remains neutral showing no divergences against the price. The Daily MACD
stays bearish while trading above its signal line. On the Candles, a rising
window has emerged. This usually implies continuation of the up move but it
requires confirmation on the following trading day.
The pattern analysis makes once thing very evident that the
Markets suffered a 100% throwback after breaking out from 10180-10200 zones. In
event of any further consolidation, we can expect these levels to act as
important support followed by the 50-DMA of the Markets.
As mentioned, despite the overall long term trend remaining
firmly in place, the fact that the NIFTY pared nearly half of its gains before
Close on Friday would remain an immediate concern. There are all chances that
Monday’s session may see the Friday’s high of 10343 acting as immediate
resistance and the Markets facing some more consolidation. We continue to recommend remaining highly
stock specific as some isolated out-performances would continue to persist.
While avoiding shorts, we recommend cautious view on the Markets 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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