MARKET OUTLOOK FOR THURSDAY, OCT 12, 2017
In our Wednesday’s note, we had made a categorical mention about
possibilities of profit taking bout from higher levels. On Wednesday, the
Markets traded precisely on those lines as the benchmark NIFTY gave up nearly
90-odd points from the intraday high and ended the day with net loss of 32.15
points or 0.32%. Going into trade on Thursday, we continue to expect the
Markets in general to remain volatile and continue to remain susceptible profit
taking bouts at higher levels. However, huge amount of shorts were seen being
added to the system and this will cushion the Markets on the downside in coming
days.
The levels of 10030 and 10065 will play out as immediate
resistance area for the Markets. Supports come in at 9945 and 9910 levels.
The Relative Strength Index – RSI on the Daily Chart is 53.4260
and it remains neutral showing no divergence to the price. The Daily MACD stays
bullish while trading above its signal line. An Engulfing bearish pattern has
emerged on NIFTY. Since this has come during an upward pullback, it may halt
the up move temporarily. However, it requires confirmation on the following
day.
The pattern analysis show that the NIFTY has taken support on the
rising trend line and this is likely to remain the crucial support area for the
NIFTY followed by the important 50-DMA which stands at 9943.
Overall, we see the coming days remain volatile to a larger extent
and all up moves are likely to remain susceptible to profit taking bouts much similar to what we
witnessed on Wednesday. Having said this, given the shorts in the system, the
downsides too remain limited. Overall, as we see all these factors, we can
fairly conclude that we are facing volatile but range bound days ahead. We
continue to recommend adopting a highly stock specific cautious view on the
Markets over coming days.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.