MARKET OUTLOOK FOR TUESDAY, JUNE 27, 2017
The session on Friday remained disappointing as the Markets
continued to correct much on expected lines. The NIFTY50 ended the day with a
net loss of 55.05 points or 0.57%. Markets will open on trade on Tuesday after
a extended weekend following a public holiday. We expect a modestly positive
start to the Markets. Global set up has remained positive and there can be
likely positive adjustments in the Indian Equities as well. However, as of now,
the zones of 9700-9725 have firmly established themselves as a temporary top to
the Markets.
On Tuesday, the levels of 9610 and 9645 will pay out as
immediate resistance levels. The supports will come in at 9550 and 9510 zones.
The Relative Strength Index – RSI on the Daily Chart is
51.0343. It has marked a fresh 14-period low and this is bearish. The Daily
MACD stays bearish as it continues to trade below its signal line. A big black candle that occurred reinforced the
credibility of the resistance area at 9625-9650 zones.
The pattern analysis show the NIFTY has breached its short
term 20-DMA and it also now trade below its rising trend line which as acting
as support as of now. In event of any pullback, this area is likely to act as
resistance.
Further to this, beginning Tuesday, we enter a shortened
expiry week we will see actions remaining heavily dominated with rollover
centric activities. However, we expected some stability in the Markets to
return but very narrow Bollinger bands still keep Markets exposed to some sharp
movement. Volatility is likely to persist and we recommend preserving cash and
adopting cautious outlook on the Markets.
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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