Monday, November 13, 2017

MARKET OUTLOOK FOR MONDAY, NOV 13, 2017

MARKET OUTLOOK FOR MONDAY, NOV 13, 2017
In a volatile session on Friday, the benchmark NIFTY50 ended the day with a modest gain of 12.80 points or 0.12%.  The final hour of the trade saw the Index recovering nearly 75-odd points from the lows of the day. With the given technical structure, we can sure this label such behavior of the Markets as display of internal strength. Notwithstanding the fact that the Markets in general still continue to remain prone to some more consolidation, we can expect the Markets to trade with positive bias on Monday. The levels of 10200 will continue to provide important support in event of any downsides.

The levels of 10350 and 10390 will remain important resistance levels. Supports come in at 10275 and 10200 levels.

The Relative Strength Index – RSI on the Daily Chart is 57.1654. It remains neutral showing no divergence against the price.  The Daily MACD stays bearish trading below its signal line. No significant formations were seen on Candles.

While the pattern analysis continue to show the Markets taking a breather after breaking out from 10200 zones, the current levels represent nearly 60% retracement from its  recent highs. Also, the last hour recovery on Friday has come with a very decent addition of Open Interest. All this point towards the underlying strength that the Markets have been demonstrating in general. It is very likely that the downsides, if any, will remain limited and all such corrective moves that result into consolidation should be utilized to make stock specific purchases.

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  


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