MARKET OUTLOOK FOR FRIDAY, AUG 18, 2017
The Markets headed nowhere on Thursday and oscillated in a
capped range as the benchmark NIFTY50 ended the day with minor gain of 6.85
points or 0.07%. Very much on expected line, the NIFTY did test its short term
20-DMA and consolidated around those levels moving back and forth in a defined
range. The Markets have shown a great underlying strength and on Friday, we
expect the Markets to most probably resume its up move and attempt to move past
the 20-DMA. If not, then we will see it consolidate with positive bias. Moving
past 20-DMA will induce some more strength to the Markets.
The levels of 9960 and 9995 will act as resistance levels
while supports to the Market will come in at 9865 and 9810 levels.
The Relative Strength Index – RSI on the Daily Chart is 51.4000
and it remains neutral showing no divergences against the price. The Daily MACD
has flattened its trajectory and may move towards positive crossovers in coming
days. No major formations were observed on Candles.
The pattern analysis depicts the Markets remaining
comfortably within the upward rising channel. The pullback has halted near the
short term 20-DMA and we will see the Markets attempting to move past it once
again.
The NIFTY August futures have seen addition of over 13.99
lakh shares or 5.93% in Open Interest. There are large positive build up in the
system and the previous couple sessions have traded with inherently buoyant bias.
In even of any consolidation, we would recommend strictly avoiding any short
positions. Any consolidation or any minor collective move should be utilized to
make fresh purchases. While remaining heavily stock specific, cautious optimism
is advised for the day.
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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