Wednesday, June 28, 2017

MARKET OUTLOOK FOR WEDNESDAY, JUNE 28, 2017

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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