MARKET OUTLOOK FOR MONDAY, JAN 15, 2018
The session on Friday remained much volatile while the benchmark
NIFTY50 swung nearly 80-odd points back and forth amid good amount of
volatility. The Markets saw a sharp
decline in the late morning day while dipping to the day’s low of 10597.10, but
recovered over 80-points before ending the day with net gains of 30.05 points
or 0.28%. The Markets have ended the day near the high point and speaking
purely on technical note, the Markets are expected to open modestly into the
green and continue with its up move, at least in the initial trade. Though the technicals remain slightly
overstretched on the Daily Charts, some more upticks with intermittent
corrective bouts may not be ruled out.
The levels of 10705 and 10760 will play out as immediate
resistance area for the Markets. Supports come in at 10655 and 10610 zones.
The Relative Strength Index – RSI on the Daily Chart is 69.8058
and it has continued to mark its 14-period high which is bullish. It does not
show any divergence against the price. Daily MACD is bullish while it trades
above its signal line. On the Candles a Doji emerged. Also a candle with a long
lower shadow emerged. However, these have occurred during an uptrend and the
Doji has not gapped above the previous bar and therefore they are less
significant in the present context.
The pattern analysis clearly show the rally that emerged after the
NIFTY broke above the 10490-mark being extended further. There are chances that
the NIFTY tests the 10750-10775 mark and
thereafter sees some corrective consolidation happening again.
Overall, there is still some steam left in the Markets to extend
its present rally before it starts consolidating again. However, this further
up move may be accompanied with minor corrective bouts. Also, we expect the
coming sessions to remain somewhat ingrained with volatility as well. With no
signs of any retracements, we recommend picking select stocks and keep effectively
rotating the sectors while the Markets reaches for its over-head resistance
area once again. Cautious optimism is what 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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