MARKET OUTLOOK FOR FRIDAY, APRIL 28, 2017
Markets headed nowhere as the benchmark NIFTY50 oscillated
in a capped range much on expected lines to end the day with minor loss of 9.70
points or 0.10%. The expiry day remained quiet as no major swings were seen but
profit taking still dominated the underlying sentiment. On Friday, a quiet
opening is expected and this juncture, we wish to point out that currently the
Markets are at their important and multiple pattern resistance and we can see
some consolidation that can now last for a longer period. Though no major
downsides are expected but we may see spending larger time consolidating in a
capped and defined range.
The levels of 9350 and 9385 will act as immediate
resistance. The supports come in at 9265 and 9230 zones.
The Relative Strength Index on the Daily Chart is 66.3548
and it remains neutral. The MACD is bullish while it trades above its signal
line. An Engulfing Bearish line has occurred on Candles. This has
potential to mark a temporary top the Markets and halt its present up move for
a while. However, it needs confirmation.
The pattern analysis shows Markets resisting at a point that
converges as a multiple pattern resistance. A rising trend line is drawn from
the lows of December 2016 joining the troughs of the major primary upward
rising channel. It presently stretches to the current levels of the NIFTY as
evident from the Charts. It may so happen that the Markets may see itself
moving in sideways trajectory for some time, gather strength and move up again.
All and all, as mentioned often in our previous notes, there
are no signs that signal reversal of primary trend which still remains upwards
and intact. However, some signs have emerged that can potentially halt the
present momentous up-move for some time. The NIFTY has risen over 220-odd point
in previous three sessions and it would be no surprise if we see the Markets
getting pushed into some longer time frame consolidation. Also, after Friday’s
session, we will open after a extended Week-end with Monday being a trading
holiday. Some amount of caution is likely to weigh on the Markets.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Member:
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
+91-98250-16331
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