MARKET OUTLOOK
FOR WEDNESDAY, DEC 13, 2017
After three days of a pullback, the Indian Equity Markets
snapped its rally and saw some corrective pressure coming in. The benchmark
Index NIFTY50 ended the day losing 82.10 points or 0.80%. The Markets had seen
a technical pullback of 300-odd points
from the recent lows but on Tuesday, it gave up a quarter of its
recovery. Going into trade on Wednesday, we expect a quiet start to the
session. The Index has taken support at its 50-DMA and this level would be
important to watch for at Close levels. However, some corrective pressure may
remain on the Markets but any breach below 50-DMA will take the Markets lower.
Wednesday’s session will see the levels of 10265 and 10300
playing out as immediate resistance levels. Supports come in at 10180 and 10135
levels.
The Relative Strength Index – RSI on the Daily Chart is
49.9515 and it stays neutral showing no divergences against the price. The
Daily MACD is currently bearish trading below its signal line but it is sharply
moving towards positive crossover in coming days. An Engulfing
Bearish Candle
has emerged. However, this formation cannot be read in an isolated manner. It
should be read in context of the overall structure of the Charts and its place
of occurrence. In the current scenario, its formation remains insignificant.
The pattern analysis shows the Markets remaining in the
falling intermediate channel on the Daily Charts. It continues to face resistance in the
10360-10380 levels.
Overall, the weakness that we saw in the Tuesday’s session
came in little early. Resistance was expected but it was expected in the
10360-10380 zones. These levels will still continue to pose resistance to any
pullback that the Markets may see. The Markets are in very close vicinity of
the 50-DMA and this would be an important support to watch at the Close levels.
Any meaningful breach below 50-DMA might induce some more weakness in the
Markets. We advice a cautious view on the Markets, we also recommend keeping
overall exposures modest while avoiding shorts.
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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