MARKET OUTLOOK
FOR WEDNESDAY, NOV 15, 2017
The Markets ended in red for the second day in a row on
Tuesday as the last hour of the trade saw the benchmark NIFTY50 paring all of
its intraday recovery. The Index ended the day with a net loss of 38.35 points
or 0.38%. Going into trade on Wednesday,
the Markets remain in extremely precarious condition and the levels of
10180-10200 remain extremely critical levels to watch out for. When the Markets
traded in a rectangle formation for nearly 3 months, these levels of
10180-10200 acted as a resistance. Now on its way down, these supports are
strongly expected to act as supports.
The levels of 10245 and 10270 are expected to act as
immediate resistance levels for the Markets. Immediate support for the Markets exists at
10115 which is the 50-DMA level.
The Relative Strength Index – RSI on the Daily Chart is 45.5995
and it has marked a fresh 14-period low which is bearish. However, it does not
show any divergence against the price. The Daily MACD stays bearish while trading
below its signal line.
The pattern analysis confirms that the NIFTY has achieved a
100% throwback. This means that it has retraced 100% of its up move when it had
broken out from 10200 levels. It now trades at those very levels from where it
broke out.
Theoretically speaking, the zones of 10180-10200 were
serious resistance levels for the Markets when it broke out from there. On its
way back, these levels are strongly expected to act as supports. We expect a
tepid start to the Markets going into trade on Wednesday. It would be important
to note that any significant breach from 10180-10200 zones would increase the
possibilities of the Markets testing its 50-DMA level. While adopting highly
cautious view on the Markets, we also expect to see isolated stock specific
out-performances as well.
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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