Friday, October 6, 2017

MARKET OUTLOOK FOR FRIDAY, OCT 06, 2017

MARKET OUTLOOK FOR FRIDAY, OCT 06, 2017
After a stable and positive start, the benchmark NIFTY50 gave up its gains to end in the red losing 26.20 points or 0.26%. The important technical factor to take note of in Thursday’s session was that the NIFTY resisted to the upward rising trend line of the channel that it has breached on the downside. Also, this coincided with the 50-DMA which stand at 9944.43 today. Going into trade tomorrow on Friday and subsequently, this level of 50-DMA will continue to pose resistance to the Markets at Close levels. We can see some consolidation happening after nearly 250-point pullback from 9685 levels.

Friday will see the levels of 9945 and 9970 playing out as resistance area. Supports come in at 9830 and 9780 zones which also coincide with the 100-DMA of the Markets.

The Relative Strength Index – RSI on the Daily Chart is 47.0801 and it continues to stay neutral with regard to the price and does not show any divergence. The Daily MACD continues to move sharply towards positive crossover but it is currently bearish while trading below its signal line.

The pattern analysis show the NIFTY resisting fiercely to the trend line of the upward rising channel and this also coincides with the 50-DMA levels. This trend line was earlier the support that the NIFTY broke on the downside and it is now acting as its resistance.

All and all, after a 250-point pullback of NIFTY from the supports of 9685, we can expect the Markets to take some breather and consolidate. Until the NIFTY moves past the 50-DMA comfortably, we can see all up moves meeting with profit taking bouts from higher levels. Overall, coming days will see the Markets remaining more stock specific and we can expect to see the Index oscillate within a given range.

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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