Thursday, November 23, 2017

MARKET OUTLOOK FOR THURSDAY, NOV 23, 2017

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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