MARKET TREND FOR FRIDAY, JUNE 10,
2016
The Markets finally gave a much expected
corrective move yesterday as it ended the day with losses. Today, we can once
again expect the Markets to open on a modestly positive note and look for
directions. The analysis for today once again remains on similar lines as the
Markets are likely to trade in a capped range. It is likely that the Markets
stays in consolidation mode, trades in a capped range and may remain volatile
as well.
For today, the levels of 8255 and 8310 are
likely to act as immediate resistance levels for today. The supports come in at
8170 and 8135 levels.
The RSI—Relative Strength Index on the
Daily Chart is 64.4992 and it has moved below 70 from an overbought area. It
stays neutral as it shows no bullish or bearish divergence or any failure
swings. The Daily MACD is bullish as it trades above its signal line.
On the derivative front, the NIFTY June
futures have added 5,550 shares or 0.03% in Open Interest, keeping it virtually
unchanged. The NIFTY PCR stands at 1.14 as against 1.13.
Coming to pattern analysis, the Markets
have continued to display good amount of strength at higher levels. It has been
consolidating since several days post break out from a triangle formation.
After gaining nearly more than 550-odd points the Markets have shown no major
signs of correction and has been consolidating at higher levels. Today as well,
a ranged consolidation cannot be ruled out. However, at the same time, with the
Markets continuing to remain in consolidation mode, it remains vulnerable to
selling bouts from higher levels. If it continues to track its upward rising
pattern resistance lines, any up moves will have the Markets test 8400 levels
on the upside.
Overall, while keeping the analysis on the
similar lines like yesterday, we reiterate that any up moves should be utilized
to protect profits on existing positions. Fresh purchases may be kept very
selective. The levels of 8288 have become a immediate top for the Markets and
any up move shall sustain only if the Markets moves past this level. Overall,
continuance of positive caution is advised for today.
Milan
Vaishnav,
Consulting Technical Analyst
Member: Market
Technicians Association, (MTA), USA
Member:
Association of Technical Market Analysts, (ATMA), INDIA
+91-98250-16331
