Monday, June 12, 2017

MARKET OUTLOOK FOR MONDAY, JUNE 12, 2017

MARKET OUTLOOK FOR MONDAY, JUNE 12, 2017
Last week, the Markets headed nowhere and on similar lines, we see the week beginning on a flat note. In Friday’s trade, the benchmark NIFTY50 saw itself ending with modest gains of 21 points or 0.22% but we see all likelihood of a tepid start on Monday. Even if we see modest gains, the overall upsides are very much likely to remain capped at 9710 levels. No significant upsides can be expected until the Markets moves past these levels. Range bound oscillations are set to persist and continue.

The levels of 9680 and 9710 will act as resistance levels. The supports come in at 9580 and 9550 zones.

The Relative Strength Index – RSI on the Daily Chart is 67.7924 and it remains neutral showing no divergences against the price. The Daily MACD is bullish as it continues to trade above its signal line but its trajectory is flattened. No significant formations are observed on Candles.

The NIFTY saw shedding of over 1.88 lakh shares or 0.85% in Open Interest. Given the spurt that we saw in last hour of the trade, we can fairly attribute this to the short covering. Key would be to see if this gets replaced with fresh buying.

The pattern analysis suggests NIFTY comfortably trading above the rising trend line drawn from 9200 levels. Any mild correction can see the NIFTY testing 9600 levels.

All and all, though there may be some intermittent upsides that we may see, the Markets overall remains very much overbought on Weekly Charts. Given this fact, any upsides, until the levels of 9710 are breached, will see chances of profit taking bouts from higher levels. We continue to reiterate caution and advise moderate exposure while protecting profits at higher levels.

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 

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