MARKET OUTLOOK
FOR WEDNESDAY, NOV 01, 2017
Trading session on Tuesday remained subdued and remained modestly
under pressure as the benchmark NIFTY50 ended the day losing 28.35 points or
0.27%. Some minor cracks appeared in Metal and Banks while the session remained
in a defined range. The Markets have started showing signs of consolidation and
the persistent bearish divergences on the lead indicators are likely to keep
the Markets in modestly corrective mode for some time. While going into trade
on Wednesday, we are likely to see the session showing some isolated
out-performances and remaining highly stock specific in nature.
The levels of 10360 and 10400 will pose resistance to the Markets
while supports will come in at 10280 and 10210 levels.
The Relative Strength Index – RSI on the Daily Chart is 66.5269
and it remains neutral on the Charts showing no failure swings. The Daily MACD
is bullish while it trades above its signal line. However, its trajectory is
seen narrowing. A small Engulfing Bearish Line emerged on NIFTY. Though small,
it is significant as it has emerged after an up move. This may potentially halt
the up move for the immediate short term.
The pattern analysis shows the Index evidently losing steam post
attempt to break out from 10200 level. Some minor signals have emerged which
show that there may be some more temporary disruption in the up move and the
Markets may be forced into some consolidation.
The F&O data also show some minor shorts opening up at higher
levels. At this stage, they remain somewhat less significant. Lead indicators
show some fatigue and some minor cracks are seen in the market-breadth as well.
In all likely hood, we might see some minor disruption in up move happening and
the Markets remaining into broad consolidation barring few isolated stock
specific out-performances.
Milan Vaishnav, CMT, MSTA
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
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