MARKET OUTLOOK FOR MONDAY, JUNE 03,
2017
The Markets continued to remain volatile as
the benchmark NIFTY50 drifted well below those crucial 50-DMA levels intraday.
However, the Markets recovered and finally ended the day while posting modest
gains of 16.80 points or 0.18%. The Markets still are not fully out of the
woods but it has certainly created some base for itself around the 50-DMA levels
but however, these levels continue to remain very critical to watch out for. We
expect a quiet start to the Markets tomorrow and at the same time, do not see
it drifting significantly below the 50-DMA mark.
While the levels of 9545 and 9580 will play
out as important resistance levels for the Markets, the supports will come at 9480
and 9410 zones.
The Relative Strength Index – RSI on the
Daily Chart is 46.0168 and it remains neutral showing no divergences against
the price. The Daily MACD is still bearish while it trades below its signal
line and has started to flatten its trajectory.
The pattern analysis show the Markets
dipping below the important trend line support drawn from 9200-mark. However,
as of now, the NIFTY has held to its important pattern support and the 50-DMA levels
which stand at 9482. This level will act as a important near term pattern
support for the Markets.
Overall, we see the Markets forming base in
this zone but still yet to see confirmation on the Charts. However, there are
chances that the Markets attempt some pullback from these levels. NIFTY trades
oversold on Stochastic and some short covering that we saw on Friday show
discomfort of participants at lower levels. Cautious optimism is advised for
the day.
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.