Market Outlook: Don’t let your guard down; be highly stock specific
, ET CONTRIBUTORS|
Updated: Oct 24, 2017, 08.00 PM IST
For the second day in a row the benchmark Nifty50 settled with minor gain of 22.85 points or 0.22 per cent, while keeping its head once again above the 10,200-mark.
Going into Wednesday’s trade, we keep our analysis on similar and cautious lines. The Nifty is creating a fresh and narrow congestion zone just near the breakout area of 10,200 levels, and it is fiercely consolidating around those levels.
We expect a quiet opening on Wednesday, but since we enter the penultimate day of expiry of current derivative series, we will see the session remaining similarly ingrained with volatility and rollover dominated activities.
There will also be some sentimental reaction to the Infosys results, whose numbers were in line with Street expectations but with lower growth guidance.
The levels of 10,250 and 10,275 will continue to pose resistance to any attempted up move. The supports come in at 10,130 and 10,065 zones.
The Relative Strength Index – RSI on the Daily Chart is 62.8261. This indicator continues to remain neutral showing no divergences against the price.
The Daily MACD stays bullish while trading above its signal line. The pattern analysis continues to show indecisiveness of the market participants.
The Nifty is hovering around its breakout area, but it has not yet achieved any clear breakout. Until the levels of 10,250 are breached in a convincing manner, no sustainable rally would occur.
Overall, it is beyond doubt that the current structure and the primary trend continue to remain bullish. Also, longer the market consolidates in a narrow zone and does not show any decline, larger are the chances that it will give a positive breakout.
However, as of this day and moment, we await this breakout.
Unless we get a definite directional bias on the markets, we will have approach the markets on a cautious note and remain highly stock and sector specific.
STOCKS TO WATCH | Fresh long positions were seen in stocks like SBI, ICICI Bank, ITC, Axis Bank, CG Power and Vedanta. Favorable technical setup is observed in stocks like HDIL, Syndicate Bank, PVR, Dabur and Dish TV. We may see these counters trading with positive bias.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)
Going into Wednesday’s trade, we keep our analysis on similar and cautious lines. The Nifty is creating a fresh and narrow congestion zone just near the breakout area of 10,200 levels, and it is fiercely consolidating around those levels.
We expect a quiet opening on Wednesday, but since we enter the penultimate day of expiry of current derivative series, we will see the session remaining similarly ingrained with volatility and rollover dominated activities.
There will also be some sentimental reaction to the Infosys results, whose numbers were in line with Street expectations but with lower growth guidance.
The levels of 10,250 and 10,275 will continue to pose resistance to any attempted up move. The supports come in at 10,130 and 10,065 zones.
The Relative Strength Index – RSI on the Daily Chart is 62.8261. This indicator continues to remain neutral showing no divergences against the price.
The Daily MACD stays bullish while trading above its signal line. The pattern analysis continues to show indecisiveness of the market participants.
The Nifty is hovering around its breakout area, but it has not yet achieved any clear breakout. Until the levels of 10,250 are breached in a convincing manner, no sustainable rally would occur.
Overall, it is beyond doubt that the current structure and the primary trend continue to remain bullish. Also, longer the market consolidates in a narrow zone and does not show any decline, larger are the chances that it will give a positive breakout.
However, as of this day and moment, we await this breakout.
Unless we get a definite directional bias on the markets, we will have approach the markets on a cautious note and remain highly stock and sector specific.
STOCKS TO WATCH | Fresh long positions were seen in stocks like SBI, ICICI Bank, ITC, Axis Bank, CG Power and Vedanta. Favorable technical setup is observed in stocks like HDIL, Syndicate Bank, PVR, Dabur and Dish TV. We may see these counters trading with positive bias.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)
