MARKET OUTLOOK
FOR WEDNESDAY, DEC 20, 2017
On the expected lines, the Markets continued with their up
move and had a follow-through session on Tuesday as the Index inched higher and
ended the day with net gains of 74.45 points or 0.72%. The session remained
within the defined parameters as the NIFTY moved closer to its life-time high
level of 10490. Wednesday is likely to see a quiet to modestly positive
opening. In all likelihood, the NIFTY may attempt to test 10490 levels but at
the same time, it would be immensely important to observe the behavior of the
Markets vis-à-vis this lifetime high level of 10490 which is likely to pose
resistance to the markets.
The levels of 10490 and 10535 will play out as resistance
levels for Wednesday. Supports come in lower at 10390 and 10335 zones.
The Relative Strength Index – RSI on the Daily Chart is
62.6297 and it has marked a fresh 14-period high which is bullish. The Daily
MACD is bullish while trading above its signal line. No significant formations
were seen on Candles.
Going by pattern analysis, the NIFTY has successfully
managed to break out of the falling channel which was formed as its
intermediate trend. The moving past of NIFTY significantly above 10490 would be
important for a sustainable up move to occur. Until this happens, we may again
see the Markets being forced into consolidation.
All and all, buoyant undercurrent may continue. However,
while we approach the levels of 10490 and before a significant breakout occurs,
we may see some profit taking happening at higher levels. The Markets remain
vulnerable to some minor profit taking bouts and this may instill some
volatility into the Markets in general. We recommend making stock specific
purchases at modest levels and concentrate more in protecting profits at higher
levels.
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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