MARKET OUTLOOK
FOR FRIDAY, JAN 12, 2018
Very much on the expected line the Indian Equity Markets continued
to positively consolidate for the third day. The benchmark NIFTY50 Index ended
the day on a positive note gaining 19 points or 0.18%. While we go into the
trade on Friday, we expect the session to trade on similar lines. The Markets
will continue to consolidate with limited downside and are likely to stay in a
defined range.
The levels of 10665 and 10710 are likely to play out as resistance
area for the Markets. Supports are likely to come in at 10615 and 10570.
The Relative Strength Index – RSI on the Daily Charts is 68.0999
and it has marked a fresh 14 – period high which is bullish. It does not show
any divergence against the price. The Daily MACD remains bullish as it
continues to trade above its signal line. No significant formations are
observed on Candles.
The pattern analysis shows the NIFTY creating a small congestion
zone after the breakout is achieved above the 10490 mark. There are minor
chances that it suffers a minor throwback but despite that it is likely to
consolidate an inch higher.
Overall, the intent of the Markets continues to exhibit bullish
bias. Though there are minor chances of a small corrective move, all the supply
will be outnumbered by demands at lower levels. We expect the momentum to continue
and while discounting the chances of minor corrective moves, the NIFTY is set
to taste 10700 – 10725 levels in the near term. Cautious optimism is advised
for the day.
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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