MARKET OUTLOOK
FOR TUESDAY, DEC 26, 2017
Friday’s session ended relatively on better-than-expected
note as the NIFTY tested its lifetime high levels and ended at a new Closing
high putting on gains of 52.70 points or 0.50%. Tuesday’s session is likely to
open on a quiet note. Though Markets in general are likely to continue to show
positive intent, the benchmark Index NIFTY50 still awaits a clear and clean
break out on the Charts. It is likely
that the NIFTY attempts fresh highs again but in any case the levels of 10490
will continue to remain important levels to watch out for. It would be
important for the Markets to remain above these levels to continue to inch
higher.
The levels of 10535 and 10580 will play out as immediate
resistance area for the Markets. Supports come in at 10410 and 10375 zones.
The Relative Strength Index – RSI on the Daily Chart is
63.6098 and it has marked its highest value in last 14-days which is bullish.
Daily MACD continue to remain bullish while trading above its signal line. No
significant formations were seen on Candles.
The pattern analysis show positive intent of the Markets on
the Daily Charts. However, despite ending at fresh Closing highs, the levels of
10490 continue to pose major resistance and the Markets are seen resisting to
those levels. For any sustainable up move to occur, the levels of 10490 need to
be breached on the upside in a meaningful way. The lead indicators show some
tiredness and this needs to be approached cautiously.
All and all, the Market breadth in the frontline Indices
also remain slightly fractured. There are all chances that the Markets continue
to see select out-performance from individual stocks and besides this, remain
in overall consolidation. In the present setup, while we still await a clean
break out, some selling pressure from higher levels cannot be ruled out. The
Nifty PCR remains at elevated levels. We recommend keeping exposures at modest
levels and focus on protecting profits at higher levels until a clear break out
is achieved.
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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