MARKET OUTLOOK FOR THURSDAY, JUNE 01, 2017
Indian Equity Markets continued to scale fresh but ended the
day with minor loss of 3.30 points or 0.03% as the benchmark NIFTY50 continued
to fiercely consolidate. In all likelihood, the NIFTY has marked a temporary
top a 9649 levels as the signs of tiredness and fatigue are clearly evident. A
quiet opening is expected on Thursday. Though the NIFTY has continued to pile
up open interest, some minor corrective action now seems imminent and overdue.
The levels of 9650 and 9680 will act as resistance while
supports come in at 9570 and 9540 zones.
The Relative Strength Index – RSI on the Daily Charts stands
at 69.4968 and it remains neutral showing no divergences against the price. The
Daily MACD stays bullish while trading above its signal line. No significant
formation was observed on Candles.
The pattern analysis shows the NIFTY hanging on above the
rising trend line that it attempted to break on the upside. In event of any
minor consolidation, this level is likely to act as minor support.
All and all, there are chances that we witness some minor
corrective activity in the Markets. The underlying current remains strong and
there is no second opinion on it. However, in order to get these up move
healthy and sustainable, some minor corrective action seems imminent and long
overdue. We recommend using all upsides from here to protect profits as all
such up moves will remain vulnerable to profit taking bouts.
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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