MARKET OUTLOOK
FOR MONDAY, DEC 11, 2017
On expected lines, the session on Friday saw the Indian
Equities firmly advancing their follow-through up move as the Index ended the
session gaining 98.95 points or 0.97%. The session was important in many ways
as the up move not only firmly validated the support of 100-DMA at Close levels
once again but also ended well above the 50-DMA and back in the intermediate
falling channel that it has created. Going into trade on Monday, we expect that
there is some more room left for the Markets to inch higher. We expect a flat
to modestly positive start to the trade and expect the benchmark Index NIFTY50
to continue with its up move. However, at higher levels, we might see NIFTY
encountering some resistance.
Monday will see the levels of 10300 and 10335 playing out as
important resistance for the Markets. Supports come in at 10200 and 10130
zones.
The Relative Strength Index – RSI on the Daily Chart is
52.2031 and it stays neutral against the price for today. Daily MACD is bearish
as it still trades below its signal line. On the Candles, a “Rising Window”
emerged. This is a kind of continuation gap on the current charts and usually
implies continuation of the up move.
While having a look at pattern analysis, it is evident that
the Markets have formed an intermediate channel from the high levels of 10490.
As of now, the Markets have inched up once again and trade above all its Moving
Averages. The lead indicators are still under a pattern formation involving
lower tops and this may see the Markets encountering resistance once again at
higher levels.
All in all, we expect a quiet start to the week with a
positive bias but also expect the Markets to face resistance going ahead. We
recommend avoiding shorts but also recommend continuing to remain highly
selective and vigilantly protect profits at higher levels. 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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.