Gemstone Equity Research & Advisory Services

Friday, June 16, 2017

MARKET OUTLOOK FOR FRIDAY, JUNE 16, 2017

MARKET OUTLOOK FOR FRIDAY, JUNE 16, 2017

In the Thursday’s session, the Indian Equity Markets continued to witness corrective activities on expected lines as the benchmark NIFTY50 ended the day with net loss of 40.10 points or 0.42%. The Markets once again tested the short term support of 20-DMA which stands a 9577.On Friday, we expect a flat start but in any given case, the zones of 9600-9575 will remain critical zone to watch for. Any dip below this will bring delay the pullback in the Markets and cause such corrective activities to continue.

On Friday, while the levels of 9600 and 9645 remains immediate resistance levels for the Markets, the supports will come in at 9550 and 9475 zones.

The Relative Strength Index – RSI on the Daily Chart is 55.0265 and it has marked a fresh 14-period low which is bearish. The Daily MACD continues to remain bearish as it trades below its signal line.

If we have a look at pattern analysis, the NIFTY has now breached the upward rising trend line which was drawn from 9200-level and now trades a notch below this support.

A minor addition of over 1.62 lakh shares or 0.76% was seen in the NIFTY JUNE Futures. This implies that minor shorts have started to build up in the system.

Overall, we once again reiterate cautious view on the Markets. It may happen that the Markets see a temporary pullback but unless it trades well above the 9600-mark, it will continue to remain vulnerable to minor selling pressures. We recommend keeping away from creating any major positions. Cash should be preserved while maintaining modest exposures in the Market.

Milan Vaishnav, CMT

Technical Analyst

(Research Analyst, SEBI Reg. No. INH000003341)

Member:

Market Technicians Association, (MTA), USA

Canadian Society of Technical Analysts, (CSTA), CANADA

www.EquityResearch.asia

http://milan-vaishnav.blogspot.com

+91-98250-16331

milan.vaishnav@equityresearch.asia

milanvaishnav@yahoo.com

Thursday, June 15, 2017

MARKET OUTLOOK FOR THURSDAY, JUNE 15, 2017

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.