MARKET OUTLOOK FOR THURSDAY, OCT 19, 2017
Some minor corrective cracks began to appear in Wednesday’s trade
as the benchmark NIFTY50 ended the day with a modest loss of 23.60 points or 0.23%.
Though the Index did recover from the lows of the day but some amount of long
unwinding remained evident in the session. Wednesday was practically the last
trading day of the Week as Thursday will have a 1-hour Muhurat Session only and
Friday remains a trading holiday.
Going into trade on Thursday, it would be too theoretical to analyze
the Markets thoroughly as such Muhurat Sessions are typically range bound
sessions. In such sessions, the Markets usually head nowhere. It oscillates in
a given capped range with no major headway on either side.
The levels of 10250 will continue to act as immediate resistance
for the Markets with supports coming in at 10180 and 10160 zones.
Going by the pattern analysis, the NIFTY has currently suffered a
minor throwback and has returned to the levels from where it has attempted to
breakout. However, given the overall reading of lead indicators, there are
greater chances that the Markets return to the broad trading range that it has
been trading in over past couple of days.
Overall, though we may expect a quiet and range bound trade on
Thursday, beginning Monday, we can expect the corrective undertone to persist.
The levels of 10250 will continue to act as immediate resistance and no
sustainable up move shall occur until the NIFTY moves past this level. We
expect the stock specific sectoral out performance to continue on Thursday. We
recommend attempting to make select value purchases while continuing to protect
profit with each up move.
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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