MARKET OUTLOOK FOR MONDAY, JUNE 19, 2017
Much on the expected lines, the zones of 9575-9600 continue
to act as stiff resistance to the Markets as the benchmark NIFTY50 moved in an
extremely narrow range to end the day a minor gain of 10 points or 0.10%. For
Monday as well, the behavior of the Markets vis-à-vis the levels of 9575-9625
will be extremely critical to watch for. For the Markets to avoid any
weakness from intensifying, it will have to manage to stay and trade above
these levels.
For Monday, the levels of 9625 and 9660 will act as immediate
resistance levels while supports will come in at 9575 and 9510 zones.
The Relative Strength Index – RSI on the Daily Chart is 56.0764
and it remains neutral showing no divergences against the price. The Daily MACD
continues to remain bearish while trading below its signal line. On the
Candles, black
candle occurred on the Daily Chart. This resembles not-so-classical spinning
top formation given the very small real body which often results from a very
narrow difference between the opening and close levels. This behavior also
demonstrates tentative approach and lack of conviction with regard to
directional bias of the Markets.
The Pattern analysis continues to
show the Markets ruling below the rising trend line that is drawn from 9200
levels. Having once dipped below that support, on its way up, this trend line
may now act as resistance for the Markets.
All and all, in most likelihood, we
expect the Markets to expand its corrective activities and continue to show
declining tendencies. With every rise, it will make itself more vulnerable to
selling bouts so long as it is trading below 9625. We continue to reiterate to
preserve cash and continue to approach the Markets with high degree of caution.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.