Monday, July 3, 2017

MARKET OUTLOOK FOR MONDAY, JUNE 03, 2017

MARKET OUTLOOK FOR MONDAY, JUNE 03, 2017
The Markets continued to remain volatile as the benchmark NIFTY50 drifted well below those crucial 50-DMA levels intraday. However, the Markets recovered and finally ended the day while posting modest gains of 16.80 points or 0.18%. The Markets still are not fully out of the woods but it has certainly created some base for itself around the 50-DMA levels but however, these levels continue to remain very critical to watch out for. We expect a quiet start to the Markets tomorrow and at the same time, do not see it drifting significantly below the 50-DMA mark.

While the levels of 9545 and 9580 will play out as important resistance levels for the Markets, the supports will come at 9480 and 9410 zones.

The Relative Strength Index – RSI on the Daily Chart is 46.0168 and it remains neutral showing no divergences against the price. The Daily MACD is still bearish while it trades below its signal line and has started to flatten its trajectory.

The pattern analysis show the Markets dipping below the important trend line support drawn from 9200-mark. However, as of now, the NIFTY has held to its important pattern support and the 50-DMA levels which stand at 9482. This level will act as a important near term pattern support for the Markets.

Overall, we see the Markets forming base in this zone but still yet to see confirmation on the Charts. However, there are chances that the Markets attempt some pullback from these levels. NIFTY trades oversold on Stochastic and some short covering that we saw on Friday show discomfort of participants at lower levels. Cautious optimism is advised for the day.

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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