MARKET OUTLOOK FOR FRIDAY,JUNE 22, 2018

MARKET OUTLOOK FOR FRIDAY,JUNE 22, 2018

The Indian Equity Markets had a disappointing session on Thursday as it opened on a mildly positive note but spent most part of the session in an extremely narrow range. The Index slipped further in the last hour of the trade and ended the day with modest losses of 30.95 points or 0.29%.

The session remained without any directional bias but NIFTY continued to remain in its present pattern and also continued to resist to its present pattern resistance zones. As we approach Friday,  we once again expect a quiet start to the day but also expect the pattern resistance zone of 10820-10850 to remain very much in force. NIFTY has to rule out any exceptional move unless these levels are breached on the upside.

Friday will see the zones of 10810 and 10830 playing out as immediate resistance area for the Markets. Supports come in at 10720 and 10660 levels.

The Relative Strength Index – RSI on the Daily Chart is 52.1682 and it stays neutral showing no divergence against the price. The Daily MACD stays bearish as it trades below its signal line. On the Candles, a big black candle occurred. In the present context, it remains important as it occurred near the pattern resistance area for the NIFTY. This reinforces credibility of the pattern resistance to which NIFTY resisted.

Pattern analysis shows that NIFTY continues to remain in a broad symmetrical triangle pattern and is moving towards its apex with each passing day. On the upside, the NIFTY continues to resist to the falling trend line which joins the high of 11171 to the subsequent falling tops

Overall, NIFTY is still not out of the woods even if it continues to move in a narrow range. It would be critically important for the NIFTY to resolve the present pattern with a move on either side. Unless this happens, the zones of 10820-10850 still continue to remain critical and important pattern resistance area for the Markets. Unless a resolution to this pattern is achieved, we recommend remaining moderate on the overall exposures and continue to vigilantly guard profits at higher levels.

STOCKS TO WATCH:

Selective longs were seen being added in ICICI BANK, TATA MOTORS, HDFC, RELIANCE, SUN TV, INFOSYS, BHEL, INDIAN OIL, HIND PETRO, BERGER PAINT, CG POWER, TATA POWER, ARVIND, LIC HOUSING, ENGINEERS INDIA, CASTROL and ZEE ENTERTAINMENT.

(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)

Milan Vaishnav, CMT, MSTA
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)

Member: 
CMT Association (Formerly known as Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
Society of Technical Analysts (STA), UK 
www.EquityResearch.asia
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