MARKET OUTLOOK
FOR FRIDAY, DEC 01, 2017
In our previous note, we had mentioned above confirmation of
the levels of 10410 becoming a temporary lower top for the Markets. Thursday’s
expiry session saw the volatility on expected lines but the session remained
weaker than expected. The benchmark NIFTY50 ended the day losing 134.75 points
or 1.30% after failing to sustain a feeble attempt to recovery. While we step
in to the December Series, Thursday’s session was technically significant. We
may see a flat to mildly positive start on Friday but that thing aside, the
levels of 10410 has been confirmed as a lower top for the Markets after 10490.
Friday’s trade may see the levels of 10180 and 10150 playing
out as immediate supports for the Markets. Upsides may find resistance at 10250
and 10310 zones.
The Relative Strength Index on the Daily Chart is 44.9564
and remains neutral while showing no divergence to the price. The Daily MACD
has reported a negative crossover and it is now bearish while trading once
again below its signal line. A Big Black Candle that emerged today reaffirmed
the credibility of the resistance levels and further it is also accompanied
with a “Falling Window” formation. This results after a weak / black candle
which emerges with a gap on the downside and this also usually results into
continuation of a weak trend.
The pattern analysis confirms the levels of 10410 as a lower
top for the Markets after the levels of 10490 as evident from the Chart.
Overall, there are chances that the Friday’s session may see
some attempts of a technical pullback but it would be extremely critical to see
if the Markets sustain such attempted pullback, if any. The immediate supports
exist in the 10180-10200 zones which is a important pattern supports that also
coincides with the 50-DMA for the Markets. The current structure of the Charts
has most likely pushed our Markets into prolonged time frame of consolidation.
We recommend remaining light on overall exposures and maintain 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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