MARKET OUTLOOK FOR FRIDAY, JUNE 02, 2017
We had mentioned in our Thursday’s note that we expect the
level of 9650 to act as immediate top for the Markets. In line with these
projections, the Markets on Thursday continued with consolidation while resisting
to the defined zone. The benchmark NIFTY50 ended the day with negligible loss
of 5.15 points or 0.05%. We expect a tepid start to the Markets on Friday and
expect the level of 9650 to continue to act as immediate resistance level. In
event of any runaway rise, the Markets will remain vulnerable to volatile
profit taking bouts from higher levels.
The levels of 9650 and 9680 are immediate resistance levels
for the Markets. The supports come in at 9570 and 9530 zones.
The Relative Strength Index – RSI on the Daily Chart is
68.7940 and it remains neutral showing no divergences against the price. The
Daily MACD is still bullish while it trades above the signal line. No major
formations were observed on Candles.
The pattern analysis shows that NIFTY continues to hang on
above the upper rising trend line that was drawn from 9200 level. The Markets
attempted a breach above this trend line but it is yet to achieve a clear
breakout.
All and all, the lead indicators continue to show the
Markets turning weary at higher levels. We expect some minor corrective
activity to happen. Such corrective activity may be in form of range bound
oscillations or some very limited downsides but such activity remain imminent
and sooner they happen they will be healthy for the Markets. Until this happen,
stock specific approach should be maintained and aggressive exposure should be
avoided.
Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Member:
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.