MARKET OUTLOOK
FOR TUESDAY, DEC 12, 2017
Despite some volatility that the session on Monday
displayed, the benchmark NIFTY50 continued to show strength and the pullback
continued as the Index ended the day with a decent gain of 56.60 points or
0.55%. As of Monday’s close, the Index has pulled back nearly 300-points. Not
only the validity of the support of 100-DMA has been reinforced, the Index
shows potential to test the upper trend line of the intermediate channel that
it has formed. While we step into trade on Tuesday, we expect the Markets to
open on a quiet to modestly positive note. We expect some morning gains coming
in. There is clear room for the Markets to continue its up-tick but the levels
of 10360-10380 will be crucial levels to watch and the Markets may find some
resistance there.
For Tuesday, the levels of 10350 and 10380 will play out as
immediate resistance levels. Supports come in at 10270 and 10210 zones.
The Relative Strength Index – RSI on the Daily Chart 55.7629
and it continues to remain neutral against the price for today. The Daily MACD
is still bearish and trading below its signal line but it is sharply narrowing
its trajectory. On the Candles, once again, a Rising Window occurred. This
implies continuation of the uptrend that the Markets are currently witnessing.
The pattern analysis clearly depicts the Markets remaining
in the intermediate falling channel that it has formed. This is a falling
channel, an intermediate one, created after forming highs at 10490. Currently,
the Daily RSI is still seen making lower highs and it is yet to breach out of a
formation. Until this happens, we can expect the Markets to face resistance at
higher levels.
Going by the overall structure of the Charts, we might see
some more up move coming in. We expect the pullback to continue but in the same
breath, we also expect the Markets to face resistance around 10360-10380
levels. If the Markets face resistance around these levels, then the current
falling channel on the Daily Chart which has emerged as an intermediate trend
will remain valid. It would be crucial to see Markets going beyond these
levels. We continue to recommend remaining highly stock specific. Picking right
stocks and protecting profits at higher levels will remain crucial as we face
Markets in coming days.
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.