MARKET OUTLOOK FOR WEDNESDAY, FEB 14, 2018

MARKET OUTLOOK FOR WEDNESDAY, FEB 14, 2018

Equity Markets had a relatively stable session on Monday. The benchmark Index NIFTY50 opened higher and stable, inched up further towards the end and ended the day with net gains of 84.80 points or 0.81%. Markets will open after a gap as Tuesday was a trading holiday. As w e go ahead into the trade on Wednesday, we expect the Markets to open on a positive note and continue with its pullback. NIFTY has maintained itself above 10480-10500 mark and this level will remain critical short term support. However, this remain a isolated reading with a caveat that the noting major is abruptly wrong with global indices overnight.

Wednesday will see the levels of 10570 and 10635 playing out as immediate resistance area for the Markets. Supports come in at 10480 and 10410 zones.

The Relative Strength Index – RSI on the Daily Chart is 41.9340. It remains neutral showing no divergences against the price. The Daily MACD remains evidently bearish while trading below its signal line but it is seen flattening its trajectory. A rising window emerged on Candles. This essentially implies a gap up and continuation of the up move, though it needs confirmation on the next trading day.

Pattern analysis indicate that the NIFTY has so far held and defended the 100-DMA and has taken supports at this important support area on Closing basis. The lower Bollinger band and the 100-DMA merge and this area collectively can act as major support area for the Markets in the immediate short term.

Overall, we expect the pullback to continue to Wednesday with a caveat that there is nothing wrong globally overnight. Having said this, we expect the NIFTY to move towards 10700-10750 zones over coming days. The F&O data too suggests that fresh longs are created with any volatile dip and all up moves and pullbacks have occurred with addition in OI which show addition of fresh long positions. We recommend continuing making fresh purchases and utilize all dips as buying opportunities. Positive and stable outlook 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 
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