MARKET OUTLOOK FOR WEDNESDAY, JUNE 28, 2017
After losing nearly 142-odd points from the high point of
the day, the benchmark NIFTY50 on Tuesday recovered from lows of the day as
well to end the day with net loss of 63.55 points or 0.66%. Corrective
activities continued in the Markets. On Wednesday, as we enter the penultimate
day of the expiry of the current derivative series, we expect a tepid start to
the Markets. Though corrective undertone will continue to persist, we will also
see some attempts by Markets to stabilize and the levels of 50-DMA will remain
important to watch for.
On Wednesday, the levels of 9540 and 9590 will act as
immediate resistance levels while supports will come in at 9470 and 9450 zones.
The Relative Strength Index – RSI on the Daily Chart is
43.9731 and it has reached its lowest value in last 14-days which is bearish.
The Daily MACD stays bearish while trading below its signal line. No significant formations were observed on
Candles.
The pattern analysis clearly shows the NIFTY breaching the
support line on the downside. This support line is the trend line drawn from
9200 levels. This has established the zones of 9700-9710 as the intermediate
top for the Markets.
All and all, the levels of 50-DMA which is 9459 will remain
extremely critical levels to watch out for. The Markets are expected to see
good support coming in this zones and it is very much expected that the Markets
will attempt to find a base around these levels. However, given the expiry
week, some volatility going ahead cannot be ruled out. Preservation of cash along
with a very cautious view on the Markets is advised.
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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