MARKET OUTLOOK
FOR FRIDAY, DEC 29, 2017
The Indian Equity Markets saw rollovers and expiry infused
volatility and ended the day with a modest loss of 12.85 points or 0.12%. The
benchmark NIFTY50 pared all of its gains in the last 45-minutes of trade and
ended near the low point. Though there was volatility in the Markets, it was range
bound volatility. The more important fact which is technically important is
that the NIFTY has once again slipped below the 10490-mark and the earlier
breakout attempt has subsequently failed because of lack of confirmation.
Going into trade on Friday, we can still expect the Markets
to show a quiet opening and try to move past the 10490 levels again. The levels
of 10490 and 10535 will act as resistance while supports come in lower at 10410
and 10350 zones.
The Relative Strength Index – RSI on the Daily Chart is 60.5969
and it stays neutral showing no divergence against the price. The Daily MACD
still remain bullish while trading above its signal line. A black body has
emerged on the Candles but it remains insignificant in the present formation.
The pattern analysis shows that the previous attempt of the
NIFTY to break above the 10490-mark has failed given the lack of confirmation.
Now, it would require to break out above
this level afresh and until this happens, the zones of 10490-10535 has
become a formidable resistance for the NIFTY.
Overall, if we discount the Thursday’s volatility to be
expiry-driven, it would be necessary to see that the NIFTY makes fresh attempts
to move past 10490-mark. No sustainable up move shall occur until the NIFTY
moves past this critical resistance zone. We reiterate our cautious view on the
Markets until this occurs. Stock specific out-performance will occur. Highly
stock specific and cautious view 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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