Tuesday, July 4, 2017

MARKET OUTLOOK FOR TUESDAY, JUNE 04, 2017

MARKET OUTLOOK FOR TUESDAY, JUNE 04, 2017
The Markets had a much robust-than-expected session as the benchmark NIFTY50 opened higher and strengthened further to end the day on a strong note gaining 94.10 points or 0.99%. Monday’s session remained significant in many ways. Firstly, much as indicated in our previous note, it reinforced the levels around 50-DMA as important support area. We expect some more follow through buying to continue on Tuesday and we can expect some positive bias in the Markets though still on a cautious note.

Tuesday will see the levels of 9635 and 9680 acting as resistance levels while supports will come in at 9650 and 9490 zones.

The Relative Strength Index – RSI on the Daily Chart is 56.6354 and it remains neutral showing no divergence against the price. The Daily MACD still stays bearish while trading below its signal line. On the Candles, a rising window occurred. It is a gap and its occurring near the support area of 50-DMA holds significance and marks the 50-DMA as important immediate support.

All and all, the Markets have also ended a notch above its short term 20-DMA. It is likely that the uptick in prices should continue. The F&O data also suggest sharp short covering took place at levels near 50-DMA and then it was followed by fresh buying on Monday’s session. This increases the possibility of the Markets inching bit higher again. Overall, we can expect select pockets of outperformance to continue in Auto, FMCG, IT and Metal packs.

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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