MARKET OUTLOOK FOR WEDNESDAY, JUNE 05,
2017
After posting a decent rise on Monday, the
Markets continued to positively consolidate on Tuesday as the benchmark NIFTY50
oscillated in a narrow range and finally ended the day with negligible loss of
1.70 points or 0.02%. We expect a positive start to the Markets and the F&O
data suggest that a good base has been built around 50-DMA and there are
chances that we see the Markets attempting some up move in coming days. In
event of any consolidation, the level of 50-DMA will continue to act as major
important short term support.
Wednesday will see the levels of 9630 and
9685 acting as important resistance levels for the Markets. Supports will come
in at 9500 and 9465 levels.
The Relative Strength Index – RSI on the
Daily Chart is 56.4194 and it stays neutral showing no divergences. The Daily
MACD still continue to remain bearish as it trades below its signal line.
The pattern analysis shows the NIFTY
attempting to find a good support and base around the 50-DMA levels. Though it
still continues to trade well below the rising trend line that acted as its
support earlier, the Markets still have some room on the upside given the
rising nature of the potential pattern resistance levels.
The adding of the OI in the NIFTY July
futures by over 4.05 lakh shares or 2.05% show some good base building up
around current levels.
Overall, the NIFTY has still managed to end
a notch above 20-DMA which is a very short term pattern support. Given the
structure of the Charts, there are chances that the Markets may attempt some
upward revision in prices. Though there may still be some profit taking at
higher levels preventing a runaway rise, we will clearly going to see sectoral
out performance in the Markets.
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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