MARKET OUTLOOK FOR TUESDAY, JUNE 13, 2017
The Indian Equity Markets witnessed a long overdue but
healthy corrective activity on Monday as the benchmark NIFTY50 posted a modest
decline while ending the day with net loss of 51.85 points or 0.54%. Again,
while not expecting any significant downside, we expect a quiet start to the
Markets and in all likelihood; we expect such corrective activity to continue.
The levels of 9600-9550 zone will be important to watch for in the immediate
short term. The breach of 9550 zone will bring in some more weakness in the
Markets.
For Tuesday, the levels of 9600 and 9550 will act as
important support levels. On the upper side, the zones of 9650-9675 will act as
immediate resistance.
The Relative Strength Index – RSI on the Daily Chart is
60.6096 and it remains neutral showing no divergences against the price. The
Daily MACD has reported a negative crossover and it now trades below its signal
line which is bearish.
The NIFTY also shed over 1.90 lakh or 0.87% in Open Interest.
This indicates that the decline that we saw on Monday has been on account of
long unwinding in the Markets.
The pattern analysis still shows the Markets hanging on
above the rising trend line that is drawn from 9200 levels. Given its rising
nature, the NIFTY has immediate support at 9600 and then at 9550 in form of its
20-DMA.
All and all, Markets are not yet fully out of the woods and
there are high chances that the corrective activities will continue. Stock
specific out-performance will be very evidently seen. However, the zones of
9600-9550 will remain extremely important to watch out for. We reiterate
maintaining cautious out-look on the Markets while keeping exposures at modest
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
