MARKET OUTLOOK
FOR FRIDAY, DEC 15, 2017
Volatility ruled the roost on Thursday as the benchmark
NIFTY50 swung either side in a deeply volatile manner and finally ended the day
with a gain of 59.15 points or 0.58%. The Markets have reinforced the credibility
of the support of 50-DMA at Close levels and also that of 10180-10200 range
support area. Before ending the benchmark Index recovered nearly 110-points
from the lows of the day. Going into trade on Friday, we expect this pullback
to continue. The Exit Poll’s outcome of the BJP retaining power in Gujarat will
also set to sentimentally aid the session on Friday. In any case, the levels of
10330-10360 still require to be crucially monitored.
The levels of 10310 and 10360 will act as immediate resistance
area for the Markets. Supports come in at 10200 and 10135 zones.
The Relative Strength Index – RSI on the Daily Chart is
50.9371 and it continues to remain neutral showing no divergences against the
price. The Daily MACD stay bearish trading below its signal line but it is
moving very sharply towards positive crossover. On the Candles, a long lower
shadow emerged. It potentially marks a reversal of the trend. It remains
significant as it has emerged near the support zone of 10180-10200 area.
The pattern analysis shows that the NIFTY has reinforced the
validity of the support area of 10180-10200 area. Despite minor breach, the
Index recovered. It has also reinforced the validity of the support of 50-DMA
levels at Close.
While we face Friday’s trade, a positive opening aided by
outcome of all Exit Polls which favor BJP retaining the power in Gujarat may
not be ruled out. However, on the upper side the resistance still exit in the
area of 10330-10360. The NIFTY continues to trade in a falling channel which
has emerged as an intermediate trend. We recommend making very select
purchases. Cautiously positive outlook is advised for the day.
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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