MARKET OUTLOOK
FOR MONDAY, JAN 08, 2018
After consolidating in the first half of the session, the
Friday’s session saw the benchmark NIFTY50 attempting to confirm its breakout.
The Markets ended at the high point of the day with the Index ending the day
with net gains of 54.05 points or 0.51%. Going into trade on Monday, we expect
a quiet start to the Markets. Having said this, we also feel that despite some
consolidation, the NIFTY is ultimately set to inch higher testing the levels of
10650-10690 in coming days. These levels may be tested if the attempted
breakout gets confirmed.
The levels of 10590 and 10635 will play out as immediate
resistance levels while the supports will come in at 10530 and 10490 levels.
The Relative Strength Index – RSI on the Daily Chart is 63.3155.
It shows a minor bearish divergence as the NIFTY marked a fresh 14-period high
while the RSI did not. However, it is seen breaking out from a pattern
formation. The Daily MACD stays bullish
while trading above its signal line. On Candles, a Rising Window occurred. This
is usually a gap and often results into continuation of up move.
The pattern analysis shows a clear attempt by NIFTY to break
above the 10490 zone. It has attempted a breakout and in all likelihood, it may confirm this in coming days even if we
see this confirmation after some intermittent consolidation.
All and all, the buoyant intent of the Markets is evident
and we may continue to see select pockets continuing to robustly out-perform
the general markets. Despite some consolidation that we might see at higher
levels once again, there are no signs of any evident weakness on the Charts. We
reiterate to completely avoid shorts and use all consolidation or minor
corrective move to pick select stocks while also continuing to protect 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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