Tuesday, September 26, 2017

MARKET OUTLOOK FOR TUESDAY, SEP 26, 2017

 MARKET OUTLOOK FOR TUESDAY, SEP 26, 2017
Indian Equity Markets had a disappointing session once again as the benchmark NIFTY50 continued its decline and ended with net loss of 91.80 points or 0.92%. Monday’s corrective move has been of a technical nature and if some critical levels are not maintained, we may see weakness persisting in the Markets. These corrective activities remain significant given the present texture of the Markets. We expect a quiet start to the Markets on Tuesday but the 100-DMA of 9758 will be critically important not just for the immediate short term but for medium term as well. Any violation will mean disruption in the primary uptrend and the zones of 10150-10170 will be marked as immediate top for the Markets.

Tuesday will see levels of 9910 and 9965 will play out as immediate resistance levels for the Markets. Supports come in lower at 9810 and 9750 levels.

The Relative Strength Index – RSI on the Daily Chart is 41.2840 and it has marked a fresh 14-period low which is bearish. It does not show any divergence against the price. The Daily MACD has reported a negative crossover and it is now bearish while trading below its signal line. Occurrence of a big black body on candles reaffirms credibility of 50-DMA as the immediate resistance levels for the Markets.

The pattern analysis saw an important development today. It shows that any dip below the 9850 mark will imply a downward breach of NIFTY from the 6-month long upward rising channel that it has been trading in. It would be extremely important for the Markets to crawl back into this channel to remain in a trading range.

Any continuing breach of current Market levels will increase the chances of the benchmark testing its 100-DMA. In all likelihood, the NIFTY has transformed itself in a broad trading band and as of now no significant signs of a reversal of trend are seen. With the primary trend still very much in place, we recommend reducing the overall exposures and wait for the Markets to stabilize following which select purchases can be made.

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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