Market Outlook: Nifty supports to come in at 9,945 & 9,910 levels, avoid shorts
, ET CONTRIBUTORS|
Updated: Oct 09, 2017, 09.41 AM IST
Market continued to display its buoyant undertone as the Friday’s session saw a better-than-expected show, while the benchmark Nifty50 ended on a strong note gaining 91 points or 0.92 per cent.
In view of the Friday’s session, the index has crawled back above the 50-DMA mark and has attempted to throw itself back into the upward rising channel that it has been trading in over past couple of month.
While a quiet start to the Markets is expected on Monday, the key would be to see if it continues to successfully survive above 50-DMA levels.
The VIX has once again dropped to the lowest values in recent times. Monday is expected to see the levels of 10,030 and 10,075 playing out as resistance area for the index. Supports come in at 9,945 and 9,910 levels.
The relative strength index (RSI) on the daily chart is 53.6557 and it remains neutral showing no divergence against the price. The daily MACD still remains bearish while it trades below its signal line.
The pattern analysis depict a positive development that the Index has once again crawled back above its 50-DMA has averted a immediate loss of momentum. Further, it has also attempted to trade inside the upward rising channel that it has breached on the downside couple of days back.
Overall, if we take a broader view of the market, though the immediate creeping in of weakness seems to have been averted, it would be important for Nifty50 to sustain above the 50-DMA. This will keep the short term momentum intact. Markets are little overbought on Stochastic and the returning of the VIX to its lowest levels in recent times once again indicate that we might see volatility creeping into the market once again.
We reiterate avoiding shorts and continue making select purchases and use all up moves to protect profits.
STOCKS TO WATCH
Friday’s session saw fresh longs being built on counters like Granules, Tata Steel, GAIL, Hindalco, Apollo Tyre, Exide Ind and RECE Ltd. Technically buoyant setup was seen in Ashok Leyland, ONGC,Infosys, Shri Renuka Sugars, Dish TV and L&T.
(Milan Vaishnav, CMT, is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)
In view of the Friday’s session, the index has crawled back above the 50-DMA mark and has attempted to throw itself back into the upward rising channel that it has been trading in over past couple of month.
While a quiet start to the Markets is expected on Monday, the key would be to see if it continues to successfully survive above 50-DMA levels.
The VIX has once again dropped to the lowest values in recent times. Monday is expected to see the levels of 10,030 and 10,075 playing out as resistance area for the index. Supports come in at 9,945 and 9,910 levels.
The relative strength index (RSI) on the daily chart is 53.6557 and it remains neutral showing no divergence against the price. The daily MACD still remains bearish while it trades below its signal line.
The pattern analysis depict a positive development that the Index has once again crawled back above its 50-DMA has averted a immediate loss of momentum. Further, it has also attempted to trade inside the upward rising channel that it has breached on the downside couple of days back.
Overall, if we take a broader view of the market, though the immediate creeping in of weakness seems to have been averted, it would be important for Nifty50 to sustain above the 50-DMA. This will keep the short term momentum intact. Markets are little overbought on Stochastic and the returning of the VIX to its lowest levels in recent times once again indicate that we might see volatility creeping into the market once again.
We reiterate avoiding shorts and continue making select purchases and use all up moves to protect profits.
STOCKS TO WATCH
Friday’s session saw fresh longs being built on counters like Granules, Tata Steel, GAIL, Hindalco, Apollo Tyre, Exide Ind and RECE Ltd. Technically buoyant setup was seen in Ashok Leyland, ONGC,Infosys, Shri Renuka Sugars, Dish TV and L&T.
(Milan Vaishnav, CMT, is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)
