MARKET OUTLOOK
FOR THURSDAY, DEC 21, 2017
Very much as analyzed in our previous note, the benchmark
NIFTY 50 did attempt to inch higher and test the 10490-mark, but it also faced
stiff resistance to those levels. The Index after a marginal high saw corrective
pressure in the second half of the session. The NIFTY finally ended the day
with net loss of 19 points or 0.18%. Thursday’s trade is likely to remain in
similar lines. The Markets may see a quiet opening and may also show some
buoyant intent but the levels of 10490 will continue to post stiff resistance
to the Markets and force it into some more consolidation.
The levels of 10490 and 10535 will pose resistance to the
Markets on Thursday. The supports come in at 10350 and 10310 zones.
The Relative Strength Index – RSI on the Daily Chart is
61.1090 and it stays neutral showing no divergence against the price. The Daily
MACD stays in buy mode while trading above its signal line. On Candles, a
not-so-classical Dark Cloud occurred. The size of the candle is relatively
small than what is usually required in such formation but this often reiterates
the credibility of the resistance area where it occurred.
While having a look at pattern analysis, the NIFTY has
managed to move out of the intermediate falling channel that it had created.
However, it has inched higher but has met with a stiff resistance at its
previous high. Also, the lead indicators remain neutral while marking a lower
top though not confirming it.
All in all, while going into trade on Thursday, we recommend
maintaining highly stock specific approach to the Markets. We will see select
components from specific sectors like INFRA, MEDIA, etc. attempting to
relatively out-perform. However, on a broader note, we still expect the Markets
to face stiff resistance at 10490-mark despite showing buoyant undercurrent.
There are all chances that the Markets may remain vulnerable to selling bouts
at higher levels and be forced in consolidation for some more time. Cautious
outlook is advised for the day.
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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