MARKET OUTLOOK FOR WEDNESDAY, JUNE 14, 2017
Though the Indian Equity Markets on Tuesday ended with very
a nominal loss of 9.50 points or 0.10%, the benchmark NIFTY50 declined just
short of 60-odd points from the high point of the day. This is enough sign in
the Markets that participants have turned cautious and for Wednesday, the level
of 9600 is crucial to watch for. It would be important for the Markets to keep
its head above 9600 and any dip below this will increase the chances of the
Markets testing its short term 20-DMA around 9565-9550 levels.
For Wednesday, while resistance stands at 9645 and 9670,
supports come in at 9565 and 9520 levels.
The Relative Strength Index – RSI on the Daily Chart 59.3684
and it has marked a fresh 14-period low which is bearish. RSI has also gone on
to market a fresh 14-period low while NIFTY has not done so. This has resulted
into Bearish Divergence. The Daily MACD remains bearish while it trades below
its signal line.
The pattern analysis suggests that NIFTY continues to remain
above the rising trend line drawn from 9200 level. However, given the rising
nature of the trend line, it will not be long that even if the NIFTY
consolidates, it falls below this trend line.
Overall, there are enough signals that corrective activities
may continue and in the given circumstances, the levels of 9600 will be
critical to watch out for. However, there would be no structural breach on the
Charts even if the Markets slip below 9600 mark to test its short term 20-DMA.
We reiterate very cautious view on the Markets and recommend keeping overall
exposure on very moderate 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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.