MARKET OUTLOOK
FOR THURSDAY, NOV 23, 2017
We had referred to the importance of the resistance area of
10345-10365 zones in our yesterday’s note and had underlined the necessity of
the Markets to move past it for a
continued up move. The Wednesday’s session played out exactly on the analyzed
lines as the Markets opened positive but came off after testing 10368. The
benchmark NIFTY50 ended the day gaining 15.40 points or 0.15%. Going into trade
on Thursday, the analysis remain on similar lines as the levels of 01345-10365
will continue to pose resistance to the Markets. A quiet opening is expected
but it would be of paramount importance for the Markets to move past these
levels for a meaningful up move.
The levels of 10365 and 10390 will once again continue to
act as immediate resistance to the Markets. Supports come in 10250 and 10200
marks.
The Relative Strength Index – RSI on the Daily Chart is
57.7557 and it continues to remain neutral showing no divergences against the
price. Daily MACD is bearish as it trades below its signal line but it is seen
sharply narrowing its trajectory. The Spinning Top on the Candles continued to
portray indecisiveness on the part of the markets participants.
The pattern analysis very explicitly shows the tentative
mood of the Markets. After taking support near the 100-DMA, the NIFTY presently
has managed to precariously hang on to the short term 20-DMA.
All and all, as we often mention, that without disputing the
broad uptrend, the levels of 10345-10365 zones are very important levels to
watch. The tentative and indecisive mood of the Markets is very much evident
and it would be once again fair to conclude that until these levels are
breached on the up side, not meaningful gains would be seen. Given the
tentative mood of the Markets and reading along with the F&O data for the
immediate short term, we continue to recommend vigilantly protecting profits at
higher levels adopting a cautious view on the Markets.
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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