Tech View for Tuesday, April 17, 2018

NSE:NIFTY   Nifty 50 Index
MARKET OUTLOOK FOR TUESDAY, APR             17, 2018

A remarkable resilience was put on display by the Indian Equity Markets on Monday as the Index opened lower, recouped all of its losses by afternoon and ended with gains. The NIFTY             closed the day gaining 47.75 points or 0.46%. In our previous note, we had expected the Markets to put up a resilient show. However, this being said, the NIFTY             has ended with gains for the 8th day in a row.

As we approach Tuesday, there are no second thoughts and the Markets are continuing to display a buoyant undercurrent. In the same breath, it is time that we now approach the Markets with caution. Some consolidation at current or little higher levels seem imminent it is time that we approach each up move with a pinch of additional caution.

For a healthy up move to continue, the Markets seen overripe for some consolidation. Tuesday will see the levels of 10550 and 10580 posing resistance to the Markets. Supports come in at 10490 and 10450 zones.

The Relative Strength IndexRSI on the Daily Charts stand at 61.6643. It marks yet another 14-period high which is bullish . RSI continues to remain neutral showing no divergence against the price. Daily MACD remains bullish while trading above its signal line. On the Candles, an engulfing bullish pattern has occurred. It is important to note that if such pattern emerges during an up move, it has a potential to temporarily halt the present up trend and push the Markets towards some consolidation.

While having a look at pattern analysis, it remains evident that the NIFTY             looks little overstretched on certain oscillators. Further, if we have a simpler look, the NIFTY             is approaching its important pattern resistance which lies in the 10550-10580 zones.

Overall, we are likely to see undercurrent remaining extremely buoyant. However, we also expect some volatility to creep in and some range bound consolidation to occur. For a healthier continuation of the current up move, it would be necessary for the Markets to consolidate a bit. We will see the session remaining highly stock specific and select out-performance will continue. While remaining light on overall exposure, proper rotation of sectors and stocks is advised while protecting profits at higher levels.

Technically buoyant set up is observed in stocks like INDIABULLS REAL ESTATE, SAIL, JAIN IRRIGATION, JINDAL POWER, CIPLA, CGPOWER             , HIND ZINC, VEDANTA             , ASHOK LEYLAND, NCC             , NOCIL             , EXIDE INDUSTRIES             and GRASIM             .

(Milan Vaishnav, CMT             , MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at

Milan Vaishnav, CMT             , MSTA
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
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

Milan Vaishnav, CMT, MSTA
Consultant Technical Analyst,
Gemstone Equity Research & Advisory Services
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out