Technical Outlook for Thursday, April 12, 2018

12 thg 4, 2018

While continuing its uptick for the fifth day in a raw, the Indian Equity Markets ended yet another day with NIFTY seeing minor gains of 14.90 points or 0.14%. Markets have exhibited extremely positive underlying intent as it recovered from the low point of the day. However, they have continued to resist to the 50-DMA and 100-DMA values which remain in extremely close vicinity of each other.

As we approach the Thursday’s trade and despite the fact that there is very evident positive undercurrent, we still feel there is a need to approach the Markets with caution. The 50-DMA and 100-DMA levels which stand at 10425 and 10440 respectively will continue to resist the Markets at Close levels.

The levels of 10440 and 10495 will act as immediate resistance area for the Markets. Supports come in at 10380 and 10320 zones.
The Relative Strength Index – RSI on the Daily Chart is 56.4564 and it has marked a yet another 14-period high which is bullish. It continues to remain neutral showing no divergence against the price. The Daily MACD remains bullish while it trades above its signal line. On the Candles, a hanging man occurred. With such formation occurring during an up move, it raises some caution at current levels. It has a potential to temporarily stall the up move.

While having a look at pattern analysis, though the Markets continue to remain comfortably in the primary up move, it facing short term resistance as well. The levels of 50-DMA and 100-DMA which remain in very close vicinity of each other are likely to cause short term resistance area for the Markets.

Overall, the Markets have continued to exhibit a strong undercurrent. It has continued to add Open Interest with each minor up move. However it also faces as major pattern resistance at 50-DMA and 100-DMA. Though we may not see any significant downsides but the Markets certainly remain prone to volatile profit taking bouts from higher levels. We continue to advise protecting profits at higher levels. There are higher chances that even if the Markets continue with its up move, it might face some range bound consolidation at higher levels. Positive caution 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
EquityResearch.asia
milan-vaishnav.blogspot.com

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