MARKET OUTLOOK
FOR THURSDAY, NOV 09, 2017
The Session on
Wednesday remained under modest corrective pressure as the benchmark NIFTY50
ended the day losing 47 points or 0.45%. As mentioned in our yesterday’s note,
the levels of 10390 acted as a resistance as the Index marked the high of
10384.25. Going into trade on Thursday, we expect the markets to see a modestly
positive opening. Markets may once again attempt for a pullback but it would be
important to see if such attempted pullback sustains as we move ahead in the
session.
The level s of
10350 and 10400 will play out as immediate resistance levels for the markets.
Supports are expected to come in at 10260 and 10225 zones.
The relative
strength index – RSI on the daily charts is 55.7944. The RSI has marked a fresh
14 – period low which is bearish. A Bearish Divergence is also observed as the
RSI has marked a fresh 14 period low while the NIFTY did not do so. The daily
MACD has also reported a negative crossover and it is not bearish while trading
below its signal line.
The patterns
analysis shows that while the NIFTY has successfully broken out on the upside
from 10199 levels, it is now evidently taking a breather and is expected to
consolidate for some more time.
All in all, there
are high chances that the NIFTY once again attempts a pullback but however, the
sustainability of such attempted pullback needs to be watched. The downsides,
if any, are expected to remain very much limited. There is no structural damage
on the charts and the fact that overall volumes have remained much lower than
average establishes that the declines that we saw are nothing but a classical
technical correction. We recommend to continue to remain highly stock specific
as we approach the session on Thursday while continuing to keep exposures at
moderate 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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