MARKET OUTLOOK
FOR THURSDAY, NOV 30, 2017
Very much on the expected lines, the Indian Markets spent
the Wednesday’s session in a much defined range while the benchmark NIFTY50
ended the day with a net loss of 8.95 points or 0.09%. We enter the expiry day
on Thursday and we will see the session continuing to remain heavily dominated
with roller centric activities. Important thing to note that the Index has
struggled for several days in the 10365-10410 zones and have not sustained
those levels. In all probability, until the level of 10410 is breached on the
upside, this level of 10410 will now act as an intermediate top and a important
resistance.
The levels of 10410 and 10445 will play out as important
resistance levels for Thursday. Supports come in much lower at 10305 and 10250.
The Relative Strength Index – RSI on the Daily Chart is
57.4833 and it stays neutral showing no divergence against the price. The Daily
MACD is bullish as it trades above its signal line but may report a negative
crossover again in event of some weakness. Spinning Tops continued to recur on
Candles which emphasizes indecisiveness on part of participants.
The Pattern Analysis does not paint a pretty picture. With
the Index resisting to the levels of 10410 and failing to clear it comprehensively
marks it as a potential intermediate short term top. On the other hand, the
RSI, which is a lead indicator to has formed a lower top and is seen inching
downwards.
Overall, it is fairly clear from the technical structure of
the Chart and the lead indicators that the upsides in the Markets will continue
to remain vulnerable to profit taking bouts. We recommend remaining much light
on the overall exposure and keep it moderate. Profits should be protected very
vigilantly at higher levels. There are chances that the session may remain
volatile owing to expiry of the current derivative series. It is advised to
continue maintaining a cautious view on the Markets as the upsides may remain
capped unless the 10410 is breached on the upside. Out-performance is likely to
remain limited to certain select pockets.
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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