MARKET OUTLOOK FOR FRIDAY, JUNE 23, 2017
In two or our previous notes, we had emphasized on the need
of approaching the Markets with high degree of caution as it remained
vulnerable to profit taking bout from higher levels. Experiencing exactly that,
the benchmark NIFTY50 on Thursday came off nearly 80-odd points from the high
of the day to end flat with a net loss of 3.60 points or 0.04%. Though there
were no losses at the Close levels, the Markets have thrown up several signals
that the zones of 9700-9710 have now become immediate short term top for the
Markets.
While the levels of 9675 and 9710 will play out as
resistance levels for the Markets on Friday, the supports will come in at 9550
and 9510 zones.
The Relative Strength Index on the Daily Chart is 58.4060
and it remains neutral showing no divergences or any failure swings. The Daily
MACD stays bearish while trading below its signal line. A Long Lower Shadow has
appeared on the Candles. This has significance as it has occurred near the high
levels and potentially signals temporary break to the up move.
The NIFTY June Futures showed shedding of Open Interest to
the tune of over 6.27 lakh shares or 2.99% in Open Interest. This shows that
the Markets witnessed long unwinding of open positions from higher levels.
We cannot ignore the fact that the Bollinger Bands are
74.37% narrow-than-normal due to very low volatility over last couple of days.
These are enough signals to point towards a sharp spike-like movement over
coming days. Also, the structure of the Daily Chart reiterates the fact that we
need to approach the Markets with extreme caution and remain prepared for
increased volatility over coming days.
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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