MARKET OUTLOOK FOR THURSDAY, JUNE 06, 2017
Though the Markets had a cautious session on Wednesday, the
benchmark NIFTY50 went on to post modest gains while it ended with net gains of
24.30 points or 0.25%. We expect a modestly positive opening on Thursday, and
further expect the Markets to post cautious upticks in prices in next coming
days. However, cautious mood will prevail under any given circumstance. We
expect the Markets to test 9700-mark if the levels of 9650 are crosses but it
would be a while before a significant breakouts are achieved.
Thursday will see the levels of 9650 and 9700 marking
important resistance levels for the Markets. The supports come in at 9605 and
9550 levels.
The Relative Strength Index – RSI on the Daily Chart is
58.8352 and it continues to stay neutral showing no divergences. The Daily MACD
remains bearish while continuing to trade below its signal line. No significant
observations were seen on Candles.
Pattern analysis shows the Markets likely to inch up but on
the upside may resist the rising trend line that it breached on the downside.
This trend line is likely to act as resistance on the way up but given the
rising nature of this trend line, the likely pattern resistance levels too will
keep shifting themselves higher.
Overall, if we have a minute look at the overall structure,
two things become evident. First, the Markets have attempted to form a good
base around its 50-DMA and second; if we visually examine the patterns of the
lead indicators, they are showing upward inclinations as well. So, overall,
though on a cautious note and with each rise remaining vulnerable to some
volatility, Markets may continue to post modest upticks.
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.