Thursday, November 9, 2017

MARKET OUTLOOK FOR THURSDAY, NOV 09, 2017

MARKET OUTLOOK FOR THURSDAY, NOV 09, 2017
The Session on Wednesday remained under modest corrective pressure as the benchmark NIFTY50 ended the day losing 47 points or 0.45%. As mentioned in our yesterday’s note, the levels of 10390 acted as a resistance as the Index marked the high of 10384.25. Going into trade on Thursday, we expect the markets to see a modestly positive opening. Markets may once again attempt for a pullback but it would be important to see if such attempted pullback sustains as we move ahead in the session.

The level s of 10350 and 10400 will play out as immediate resistance levels for the markets. Supports are expected to come in at 10260 and 10225 zones.

The relative strength index – RSI on the daily charts is 55.7944. The RSI has marked a fresh 14 – period low which is bearish. A Bearish Divergence is also observed as the RSI has marked a fresh 14 period low while the NIFTY did not do so. The daily MACD has also reported a negative crossover and it is not bearish while trading below its signal line.

The patterns analysis shows that while the NIFTY has successfully broken out on the upside from 10199 levels, it is now evidently taking a breather and is expected to consolidate for some more time.

All in all, there are high chances that the NIFTY once again attempts a pullback but however, the sustainability of such attempted pullback needs to be watched. The downsides, if any, are expected to remain very much limited. There is no structural damage on the charts and the fact that overall volumes have remained much lower than average establishes that the declines that we saw are nothing but a classical technical correction. We recommend to continue to remain highly stock specific as we approach the session on Thursday while continuing to keep exposures at moderate levels

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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