MARKET OUTLOOK
FOR WEDNESDAY, NOV 08, 2017
In our previous note, we had mentioned about fractured
Market Breadth that the Markets had for last couple of sessions. On Tuesday,
the benchmark NIFTY50 suffered a corrective crack as it ended with a net loss
of 101.65 points or 0.97%. Going into trade on Wednesday, we can expect a mild
technical pullback. While remaining highly stock specific, the Index may see
some mild improvement in market breadth as well. However, if we see a mild
technical pullback, it would be important to see if it sustains and arrests its
downside moves. We cannot expect any significant up move unless we see the
breadth of the Markets improving.
The levels of 10395 and 10430 will play out as immediate
resistance area for the Markets. Supports can be expected near 10315 and 10290
zones.
The Relative Strength Index – RSI on the Daily Chart is
60.0796 and it has just move below from the overbought territory. It shows no
divergences otherwise. The Daily MACD is still bullish as it trades above its
signal line. An Engulfing Bearish line has occurred. It has occurred after an
up move, it has established the credibility of the resistance area of 10490
levels. This means that for any fresh sustainable up move to occur, NIFTY will
have to move past the levels of 10490.
All in all, we can go into the trade tomorrow expecting a
mild technical pullback. As mentioned above, if at all if we have such expected
technical pullback, key would be to see if it sustains. As it happened in the
previous session, stock specific out-performances would continue. We continue
to reiterate maintaining highly cautious view on the Markets while keeping
overall exposures at modest levels.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.