Wednesday, October 25, 2017

MARKET OUTLOOK FOR WEDNESDAY, OCT 25, 2017

MARKET OUTLOOK FOR WEDNESDAY, OCT 25, 2017
For the second day in a row the benchmark NIFTY50 settled the day with minor gains of 22.85 points or 0.22% while keeping its head once again above the 10200-mark. While doing into trade on Wednesday, we keep our analysis on similar and cautious lines. The NIFTY is creating a fresh and narrow congestion zone just near the breakout area of 10200 levels and it is fiercely consolidating around those levels. We expect a quiet opening on Wednesday but since we enter the penultimate day of expiry of current derivative series, we will see the session remaining similarly ingrained with volatility and rollover dominated activities. There will also be some sentimental reactions to the Infosys results whose numbers were in line with street expectations but cut its growth guidance.

The levels of 10250 and 10275 will continue to pose resistance to any attempted up move. The supports come in at 10130 and 10065 zones.

The Relative Strength Index – RSI on the Daily Chart is 62.8261 this indicator continues to remain neutral showing no divergences against the price. The Daily MACD stays bullish while trading above its signal line.

The pattern analysis continues to show indecisiveness of the Market Participants. The NIFTY is hovering around its breakout are but it has not yet achieved any clear breakout. Until the levels of 10250 are breached in a convincing manner, no sustainable rally would occur.

Overall, it is beyond doubt that the current structure and the primary trend continue to remain bullish. Also, longer the Markets consolidate in a narrow zone and does not show any decline, larger are the chances that it will give a positive breakout. However, as of this day and moment, we await this breakout. Unless we get a definite directional bias on the Markets, we will have to continue to approach the Markets on a cautious note and remain highly stock and sector specific.

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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