MARKET OUTLOOK FOR THURSDAY, JUNE 22, 2017
Narrow movements of the Indian Equities continued on
Wednesday as well as the benchmark NIFTY50 recovered most of its losses to end
yet another day with modest loss. The NIFTY ended the day after losing 19.90
points or 0.21%. The recover that the Markets saw in the last hour of the trade
can be attributed to short covering that was witnessed. On Thursday, a subdued
opening is expected. Speaking purely on technical terms, the NIFTY once again
tested its short term 20-DMA and this level will remain important to watch for
if we take a very short term view.
The levels of 9690 and 9725 will act as immediate resistance
on Thursday while the supports will come in at 9580 and 9510 zones.
The Relative Strength Index – RSI on the Daily Chart is
59.1365 and it continues to remain neutral showing no divergences on either
side. The Daily MACD continues to remain bearish as it trades below its signal
line. No significant formations were observed on Candles.
On the pattern analysis front, the NIFTY is seen drifting
from the support of the rising trend line that is drawn from 9200 levels.
However, important factor is that it tested its short term 20-DMA and this
level will remain important to watch for.
Overall, until the Markets resume its up move, we reiterate
that Markets should be approached with highest levels of caution. From any time
now on, the NIFTY is set to see a sharp movement over coming days on either
side. This is suggested by the Bollinger Bands which are currently over 64%
narrower-than-normal. This is caused by drop in volatility over previous days
and can result into sharp movement on either side. Preservation of cash is
advised until a directional bias is established.
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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