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
+91-98250-16331
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