MARKET OUTLOOK
FOR THURSDAY, NOV 16, 2017
The Indian Equity Markets extended its corrective spell and continued
to end in the red on Wednesday as well as the benchmark NIFTY50 closed losing 68.55
points or 0.67%. Though we did see some modest recovery in the end but the
Index still closed below the 10180-10200 support area. The NIFTY has taken
support at its 50-DMA which stand at 10120 and this levels remains a crucial
level to watch for at Close levels. Going into trade on Thursday, we can expect
a modest start to the trading day but all throughout, it would be extremely crucial
for the NIFTY to crawl back above the 50-DMA and reach back towards 10180-10200
which will now act as modest resistance for the Markets.
The levels of 10180 and 10235 will play out as immediate
resistance for the Markets if we see a technical pullback. The support now comes
at 9979-9980 which is the 100-DMA of the NIFTY.
The Relative Strength Index – RSI on the Daily Chart is 40.8425
and it has continued to mark its 14-period low which is Bearish. No divergence
against the price is seen. Daily MACD continues to remain bearish while trading
below its signal line. On the Candles, a falling window occurred. This usually
implies continuation of weak trend for some more time.
The pattern analysis shows that the NIFTY broke out from the
10180-10200 zones and after that it has not only suffered a 100% throwback, it
has dipped inside these levels of 10180-10200 which were otherwise expected to
act as its support.
The Markets now currently rests at its 50-DMA and there are
chances that it makes feeble attempt to recover and see some pullback. However,
the attempts might remain feeble and the corrective pressure may remain
evident. The levels of 50-DMA would be crucial support for the Markets at Close
levels and failing which we will see possibilities of the NIFTY testing its
100-DMA which is currently at 9979. All in all, we still continue to recommend
making extremely select purchases using the corrective pressures. Markets are
expected to continue to see isolated stock specific out-performances. Cautious approach
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
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