MARKET OUTLOOK FOR THURSDAY, JUNE 15, 2017
The Markets saw a sharp recovery from the low point of the
day and recovered all of its intraday losses on Wednesday to end the day with
minor gain of 11.25 points or 0.12%. We expect a quiet start to the Markets
tomorrow. Further to this we do not expect any run-away up move in the Markets
as the recovery that we saw on Wednesday has been evidently due to short
covering from lower levels. Since the NIFTY took support at its short term
20-DMA, this level will continue to play out as support in the near term and
the zones of 9570-9600 will remain critical to watch out for.
The levels of 9640 and 9675 will act as resistance in the
coming session. Supports come in at 9570 and 9510 zones.
The Relative Strength Index – RSI on the Daily Chart is
60.4025 and remains neutral showing no divergences against the price. The Daily
MACD continues to remain bearish. On the Candles, a candle with a long lower
shadow has emerged with a spinning top. The long lower shadow remains
significant as it has occurred near a support. It is likely to potentially halt
the decline. However, this need confirmation in the following session.
Going by pattern analysis, the NIFTY has so far managed to
cling on to its short term pattern support of 20-DMA. So long as it manages to
hang on above this, we will see ranged consolidation continuing.
All and all, there is evident tentativeness in the Markets.
In the immediate short term, we see higher chances of minor corrective
activities to continue. The levels of 9570-9600 will be important because any
dip below this will bring in some more weakness in the immediate short term. We
will see sectors being rotated and stock specific out-performance will be seen.
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
