MARKET OUTLOOK FOR FRIDAY, FEB 09, 2018

MARKET OUTLOOK FOR FRIDAY, FEB 09, 2018

Thursday’s session remained on the expected lines as the benchmark NIFTY did enjoy a strong opening and also fiercely attempted to find and maintain base around current levels. Though the NIFTY retraced nearly 100-points from the high of the day, it recovered again and ended the session with a decent gain of 100.15 points or 0.96%. NIFTY has successfully defended its 50-DMA at Close levels as of now and has also maintained itself above the 10480-500 zones keeping hopes of a recovery alive.

We expect a positive opening once again on Friday. The intraday corrective move that was witnessed on Thursday put and the recovery that followed makes the base stronger for the Markets under usual circumstances. The levels of 10635 and 10680 will play out as immediate resistance levels while the supports will come in at 10480 and 10410 mark.

The Relative Strength Index – RSI on the Daily Chart is 41.7223 and it stays neutral showing no divergences against the price. The Daily MACD stays bearish as it trades below its signal line but it may flatten its trajectory in coming days if downsides get arrested. No significant formations were observed on Candles.

While having a look at pattern analysis, it is evident that the NIFTY pulled back sharply after intraday lows that tested the 100-DMA. At Close levels, it has defended both 100-DMA and 50-DMA as well.

Overall, we still feel that volatility may continue to persist for some time. However, select sectors have already started to outperform on expected lines and will continue to do so on Friday as well.  Also it is important to note that the intraday corrections and the recovery from that make the Markets healthier and light in terms of open positions. We expect that the Markets may attempt some more upsides with the only caveat that the levels of 10500 should be defended. Any breach of this level will bring in temporary weakness.

We recommend keeping overall exposures moderate until the Markets restores its upward directional bias.

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 
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