MARKET OUTLOOK
FOR TUESDAY, DEC 05, 2017
Much on the expected lines, the Indian Equity Markets saw
some respite from the weakness that it was seeing over past couple of sessions.
The NIFTY50 remained range bound all throughout the day and ended the session
on a flat note putting negligible gains of 5.95 points or 0.06%. Also, we had
mentioned about the levels of 10180-10200 playing out as immediate resistance
for the Markets. The Index resisted precisely at 10179 and retraced from there.
Stepping into trade for Tuesday, these levels
of 10180-10200 will continue to pose immediate resistance for the
Markets while the levels of 100-DMA will stand as important and critical
supports in event of any weakness.
The 10165 and 10200 will act as immediate resistance for the
Markets. Supports come in at 10067 which is the 100-DMA for the Markets.
The Relative Strength Index – RSI on the Daily Chart is
38.5997 and it stays neutral showing no divergences against the price. The
Daily MACD is still bearish as it trades below its signal line. No significant
formations were seen on Candles.
The pattern analysis shows possibility of a minor Double
Bottom support shaping up near 10100. The 100-DMA remains in very close
vicinity of this and therefore, in immediate short term, we are unlikely to see
any significant downsides.
Overall, the rising Open Interest that has been coming in
over previous two sessions also point towards building shorts in the system.
These shorts are likely to lend supports at lower levels. However, as of now
what we can expect is a technical pullback only. Resumption of up move shall
occur only once the NIFTY moves past the levels of 10180-10200. Until this
happens, while completely avoiding shorts, we continue to recommend keeping
exposures moderate and adopting 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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