MARKET OUTLOOK FOR TUESDAY,APR 03, 2018

MARKET OUTLOOK FOR TUESDAY,APR 03, 2018

The Markets opened after a long weekend on Monday but did not enjoy a buoyant start that was expected out of it. The benchmark NIFTY opened on just a modestly positive note and resisted near the 200-DMA for the major part of the session. However, the second half of the session saw the Markets gaining strength with the NIFTY not only crossing the 200-DMA but ending modestly above it as well gaining 98.10 points or 0.97% in Monday’s trade.

As we approach Tuesday, NIFTY faces some chances of consolidation once again. From technical perspective, Monday’s session was important as the NIFTY ended above 200-DMA which stand at 10182. We expect a quiet start to the trade and expect some consolidation in the initial stage. It would be important to see if the NIFTY takes supports near the 10180-mark while it faces possible consolidation.

The levels of 10245 and 10320 are likely resistance area for the Markets on Tuesday. Supports come in at 10180 and 10135 levels.

The Relative Strength Index – RSI on the Daily Chart is 46.3027 and it continues to remain neutral against the price showing no divergence. The Daily MACD has reported a positive crossover and it is now bullish while trading above its signal line. We had mentioned this possibility in our previous note. A white body emerged on the Candles.

The pattern analysis shows that the NIFTY has attempted to move past the 10180-mark which was the 200-DMA of the Markets and also coincided to be the important pattern resistance area for the Markets. Though this has not been significantly breached on the upside, the likelihood of the continuation of the up move definitely remains.

Overall, in all probabilities, we may see some minor consolidation and then NIFTY continuing the pullback that it has started after defending the crucial 10040-mark. Having said this, we reiterate continue making select purchases with each consolidation or a minor corrective move that occurs. We will continue to see select outperformance from select stocks sprinkled over few sectors. Cautious optimism is advised for the day.

STOCKS TO WATCH:

Stocks like HEXAWERE, CG POWER, HIND ZINC, VEDANTA, INDIABULLS REAL ESTATE, TATA POWER, JAMNA AUTO, BOMBAY DYEING, NBCC and TRIDENT continue to see a relatively bullish technical set up.

(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)

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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