MARKET OUTLOOK
FOR TUESDAY, NOV 07, 2017
Volatility crept in the Monday’s session as the NIFTY swung
60-odd points on either side before ending completely flat with negligible gain
of 0.70 points or 0.01%. Though the benchmark NIFTY 50 came off swiftly from
the opening lows, it came off from the highs as well before ending flat. The
Markets not declining is certainly a show of strength but the overbought nature
of the Markets coupled with very less intraday trading bands is certainly to
keep market participants on toes. We expect such fierce consolidation to
continue before Markets attempts a fresh up move.
The levels of 10490 and 10525 will be important levels to
watch for Tuesday. Supports come in at 10410 and 10350 zones.
The Relative Strength Index –RSI on the Daily Chart is
71.0366 and it remains neutral showing no divergence against the price. The
Daily MACD is bullish while it trades above its signal line. No significant
formations were seen on candles.
The pattern analysis clearly shows the NIFTY attempting to
briefly consolidate and attempt a fresh up move. However, the overbought nature
of the Markets may keep the Index under consolidation for some more time.
All and all, even after such up move and the Markets showing
no signs of decline is certainly a show of underlying strength. However, it
also needs to be noted that couple of previous up moves have come with highly
fractured market breadth which remains a important technical worry for the
Markets. There are great chances that the Markets continue to remain volatile
and remain vulnerable to short term corrective spikes. Also, it is highly
likely to remain stock specific in nature. Cautious view is advised for today.
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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