MARKET OUTLOOK FOR MONDAY, JUNE 12, 2017
Last week, the Markets headed nowhere and on similar lines,
we see the week beginning on a flat note. In Friday’s trade, the benchmark
NIFTY50 saw itself ending with modest gains of 21 points or 0.22% but we see
all likelihood of a tepid start on Monday. Even if we see modest gains, the
overall upsides are very much likely to remain capped at 9710 levels. No
significant upsides can be expected until the Markets moves past these levels.
Range bound oscillations are set to persist and continue.
The levels of 9680 and 9710 will act as resistance levels.
The supports come in at 9580 and 9550 zones.
The Relative Strength Index – RSI on the Daily Chart is
67.7924 and it remains neutral showing no divergences against the price. The
Daily MACD is bullish as it continues to trade above its signal line but its
trajectory is flattened. No significant formations are observed on Candles.
The NIFTY saw shedding of over 1.88 lakh shares or 0.85% in
Open Interest. Given the spurt that we saw in last hour of the trade, we can
fairly attribute this to the short covering. Key would be to see if this gets
replaced with fresh buying.
The pattern analysis suggests NIFTY comfortably trading above
the rising trend line drawn from 9200 levels. Any mild correction can see the
NIFTY testing 9600 levels.
All and all, though there may be some intermittent upsides
that we may see, the Markets overall remains very much overbought on Weekly
Charts. Given this fact, any upsides, until the levels of 9710 are breached,
will see chances of profit taking bouts from higher levels. We continue to
reiterate caution and advise moderate exposure while protecting profits at
higher levels.
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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