Friday, May 18, 2018

MARKET OUTLOOK FOR FRIDAY,MAY 18, 2018


MARKET OUTLOOK FOR FRIDAY,MAY 18, 2018

Thursday’s session saw the Markets opening a mildly positive note. Soon after this, the NIFTY saw itself slipping in the red and spending major part of the session in a narrow and capped range. It got weaker by the end and ended the day with a net loss of 58.40 points or 0.54%. Thursday’s session saw the Markets extending its weakness but the NIFTY still continue to trade comfortably above its critical supports.
As we approach Friday’s trade, we expect some stability in the Markets. Even if there is a tepid and tentative start to the trade, 10630-10650 is likely to provide cushion to the Markets. NIFTY presently rests at its short term support.
We expect the levels of 10745 and 10785 to provide resistance to the Markets. Supports are expected to come in at 10650 and 10610 zones.
The Relative Strength Index – RSI on the Daily Chart is 54.4640 and it has just reached its lowest value in last 14-days and this is bearish. It also shows Bearish Divergence against the price. Daily MACD has shown a negative crossover and it is now bearish while trading below its signal line. A big black candle emerged on the Candles. However, in the present context it is likely to be less harmful as it has not occurred immediately after an up move.
The pattern analysis show the steady retracement of NIFTY after it attempted to breakout from the 10500-10600 mark which represented the upper and the multiple resistance area for the Markets.  NIFTY presently rests at the short term 20-DMA and is likely to seek some support in the vicinity of this zone.
Overall, the rising crude prices and ever strengthening US 10-YR Bond Yields are doing more damage to the Markets than the external political events. With the political events behind us, the Markets in general are focus more on legitimate technical set-ups than anything else. The elevated levels of NIFTY PCR too point towards some more consolidation persisting in the Markets. That being said, we will continue to see sector specific performances in the Markets as well. With no structural damage as of now, focusing on right stocks with sound set-ups is likely to end up rewarding in such volatile Markets.
STOCKS TO WATCH:
Long positions were seen being built in stocks like SUN PHARMA, GRANULES, BHEL, COAL INDIA, BAJAJ FINANCE, BAJAJ FINSERV, UJJIVAN, EQUITAS, WIPRO, HINDUSTAN ZINC, MARICO, PETRONET and SAIL.

(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)

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 
www.EquityResearch.asia
http://milan-vaishnav.blogspot.com

+91- 70164-32277  /  +91-98250-16331  
milan.vaishnav@equityresearch.asia
milanvaishnav@yahoo.com


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