MARKET OUTLOOK FOR THURSDAY,JUNE 14, 2018

MARKET OUTLOOK FOR THURSDAY,JUNE 14, 2018

In the Wednesday’s session, NIFTY made a half-hearted attempt to move past the 10850 mark which has been posing critical resistance to the Markets. In a session that remained largely range bound and capped on the upside, the NIFTY came off from the high point of the day and settled with minor gains of 13.85 points or 0.13%.

We expect a  quiet start to the day but just like the previous session, the levels of 10,850 and the behavior of the Markets vis-à-vis this level needs to be critically watched. NIFTY will have to move past this level in a convincing manner for any meaningful up move to occur. If it faces resistance at higher levels just like it happened in the previous session, it is likely to be pushed into some more consolidation.

Thursday will see the levels of 10890 and 10945 as immediate resistance levels. Supports come in lower at 10810 and 10760 zones.

The Relative Strength Index – RSI on the Daily Chart is 63.0384 and it has reached marked its highest value in last 14-days which is bullish. It does not show any divergence against the price. Daily MACD stays bullish while trading above its signal line. Apart from black body that occurred on Candles, no significant formations were seen.

Going by the pattern analysis, it is seen that NIFTY is making attempts to move past the pattern resistance that exists in form of falling trend line that emerges from 11170 and subsequently joins the falling tops.

F&O data and lead indicators exhibit strong undercurrent and buoyant intent of the Markets. There are chances that though we might see some corrective swings given the current structure of the Markets, eventually it is expected that the NIFTY is likely move past 10850-mark which has been posing important pattern resistance to the Markets. We are also likely to see some volatility persisting in the trade but overall session is likely to remain range bound with limited downsides and underlying buoyant intent. While still continuing go guard profits at higher levels, selective purchases may be continued.

STOCKS TO WATCH:

Good technical set up is observed in stocks like JSW STEEL, STATE BANK, RELIANCE, ICICI BANK, YES BANK, AXIS BANK, EXIDE, POWERGRID, INDIA CEMENTS, M&M and TATA MOTORS.

(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)

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 
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