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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