MARKET OUTLOOK
FOR THURSDAY, JAN 04, 2018
The Indian Equity Markets consolidated on a positive note
today ending virtually flat while gaining just 1 point or 0.01%. However, as it
has been happening, the 10490-10535 zones proved to be a strong resistance
area for the Markets. The Index saw
retracement and paring of gains after testing the high level of 10503.60. There
is a divergence in performance of NIFTY even with strongly correlated Asian
Markets like Hang Seng. Given the kind of consolidation that the Markets are
witnessing and while referring the F&O data, we feel that the Markets may
consolidation but with a upward bias only to move up again.
The levels of 10490 and 10535 will play out once again as
immediate resistance area for the Markets. Supports come at 10410 and 10375
zones.
The Relative Strength Index – RSI on the Daily Chart is 55.7909
and it continues to stay neutral against the price showing no divergences. The
Daily MACD stays bullish while trading above its signal line. A small black
body occurred on the Candles. However, this remains insignificant given the
present formation.
The pattern analysis show that the NIFTY has continued to
resist to the 10490-10535 zones for couple of times now. It makes one thing
pretty evident that that for a up move occur and sustain, Markets will have to
move past the resistance area of 10490-10535 zones.
Overall, looking at the high correlation that the NIFTY
enjoys with Hang Seng Index among Asian peers, and the fact that Hang Seng
Index has already broken out from its life time highs, it makes highly probable
that the NIFTY may not correct much. There are high probabilities that the
NIFTY may just continue to consolidate for some more time but finally resumes
its up move. However, until the resistance area of 10490-10535 is breached on
the upside, positively cautious approach 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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