MARKET OUTLOOK
FOR THURSDAY, DEC 28, 2017
What seemed to be a likely confirmation of a attempted
breakout, turned out disappointing in the last hour and half of the trade as
the Markets witnessed a profit taking bout from higher levels. The NIFTY pared
all of its gains and finally settled the day with net loss of 40.75 points or 0.39%.
The fact that was technically significant in the Wednesday’s trade what that
the NIFTY has still not yet confirmed its attempted breakout. Going into trade
on Thursday, the levels of 10490 shall remain critically important for the
Markets.
NIFTY will have to move past and trade above 10490 to avoid
any weakness. Any slip below this level will see the Markets being forced into
some more corrective consolidation. The levels of 10535 and 10580 will play out
as resistance levels while the supports will come in at 10440 and 10405 zones.
The Relative Strength Index –RSI on the Daily Chart is 61.7832
and it remains neutral showing no divergence against the price. The Daily MACD
stays bullish while still trading above its signal line. A black body emerged
on Candle. But it remains insignificant in the present scenario.
The pattern analysis clearly shows lack of confirmation of
the attempted breakout. The NIFTY has taken support on the same value i.e.
10490 which is the level it attempted to breach on the upside. This level
remains important and might dictate the movement of NIFTY over coming days.
We also enter the expiry day of the current derivative
series and we will continue to see the session remaining dominated with rollover
centric activities. Unless the NIFTY moves past the level of 10490 in a
comprehensive manner, it will continue to remain susceptible to volatile profit
taking bouts at higher levels. While continuing to keep exposures at very
modest levels, highly 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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