MARKET TREND FOR TUESDAY, JUNE 07,
2016
The Markets continued to remain in consolidation
as expected and while it ended the day with minor losses, it continued to
display good amount of strength as well. Today, the analysis continues to remain
once again on similar lines. Today, we can once again expect the Markets to
open on a positive note but at the same time, it will continue to remain
vulnerable to selling bouts from higher levels. Markets shall also react to RBI
Policy review wherein it is expected to keep rates unchanged.
For today, the levels of 8240 and 8275 will
act as immediate resistance levels for today. The supports come in at 8170 and
8120 levels.
The RSI—Relative Strength Index on the
Daily Chart is 68.7100 and it remains neutral as it shows no bullish or bearish
divergence or failure swings. The Daily MACD stays bullish as it trades above
its signal line.
On the derivative front, the NIFTY June
futures have shed over 2.01 lakh shares or 0.95% in Open Interest.
Coming to pattern analysis, the Markets
have been displaying great amount of strength as it has been consolidating in a
capped ranged after a sharp rise of over 450-odd points. It has shown no signs
of correction and has been consolidating in a very narrow range. The Markets
will test its usual pattern resistance but that line is rising with each
passing day thus taking the upside resistance higher. In event of any up move,
the upside levels of 8300-8325 cannot be ruled out.
Overall, the undercurrent continues to remain
buoyant and the Markets will continue to display good amount of strength. Any
downsides are expected to be bought and thus shorting at any levels is not
advised. RBI is expected to keep the rates unchanged and any change shall be a
positive surprise for the Markets. Overall, while continuing to avoid shorts,
stock specific purchases may be continued to be made.
Milan
Vaishnav,
Consulting Technical Analyst
Member: Market
Technicians Association, (MTA), USA
Member:
Association of Technical Market Analysts, (ATMA), INDIA
+91-98250-16331
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