MARKET OUTLOOK FOR MONDAY, SEP 18, 2017
On Friday, the Indian Equity Markets continued to
consolidate and ended virtually unchanged with the NIFTY ending the day with
negligible loss of 1.20 points or 0.01%. In the previous Week, we have seen the
Markets consolidating fiercely and remaining in extremely capped range. On
Monday, we expect a quiet start and also expect the previous two days of
consolidation to get spilled into the coming week as well. Monday is likely to
see a range bound session once again with the zones of 10135-10150 continuing
to offer serious resistance to the Markets.
Monday will see the levels of 10135 and 10190 playing out as
serious resistance levels for the Markets. Supports come in at 10020 and 9960
levels.
The Relative Strength Index – RSI on the Daily Chart is
62.1810 and remains neutral showing no divergences against the price. The Daily
MACD stays bullish but it has flattened its trajectory. No significant
formations were observed on Candles.
The pattern analysis shows that the NIFTY continues to trade
in the upward rising channel that it has formed over past couple of months. It
is continuing to track the upper Bollinger band and hovers within very short
distance of its lifetime highs.
Overall, with the Markets trading above all of its moving
averages, there is no reason to fear or expect any serious downsides from these
levels as of now. However, we cannot ignore some evident fatigue on the lead
indicators coupled with relatively high NIFTY PCRR (Put to Call Ratio). These
factors are either likely to keep the Markets under check or prevent any
immediate meaningful upsides from current levels. We expect volatile range
bound consolidation to continue and recommend cautiously positive outlook on
the Markets 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
+91- 70164-32277 / +91-98250-16331
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