Friday, June 9, 2017

MARKET OUTLOOK FOR FRIDAY, JUNE 09, 2017

MARKET OUTLOOK FOR FRIDAY, JUNE 09, 2017
Though no major downsides were seen, the Markets continued to put a lackluster show on Thursday as  the benchmark NIFTY50 ended the day with a modest loss of 16.65 points or 0.17% after coming off 40-odd points from the high of the day. On Friday, though we see a quiet opening, we will continue to see the Markets putting up a weak show and no runaway pullback is expected. Tiredness is evident and at this juncture, unless there are stock specific opportunities, we do not recommend any major long exposures until the Markets move past the 9710-mark.

On Friday, we will see 9675 and 9710 acting as immediate resistance levels for the Markets. Supports come in at 9580 and 9535 zones.

The Relative Strength Index –RSI on the Daily Chart is 66.2899 and shows no divergences on either side and is neutral. The Daily MACD is bullish but it is moving towards reporting a negative crossover. No major formations were observed on Candles.

Going by pattern analysis, Markets have managed to move past the upward rising trend line drawn from 9200 mark and as of today has managed to keep its head above it. Given the upward rising nature of this trend, it offers immediate pattern support in the zones of 9580-9600.

All and all, even with the overbought nature of the Markets over previous days, the NIFTY has not shown much decline. This certainly displays underlying strength in the Markets. However, we still recommend exercising high amount of caution and keep overall exposure at moderate levels. Fresh sustainable up moves shall occur only above 9710 levels. Until this happens, and so long as Markets consolidate, adopting stock specific and cautious approach is advised.

Milan Vaishnav, CMT
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Member:
Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA

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