Monday, June 8, 2015



The beginning of the new trading week will be no different from the past week. Technically,  Markets are likely to resume  in the same mood from where it paused on Friday last.  Expect the market today to open on a slightly negative note today and look for directions in initial hours of the trade today. The market may witness  bouts of buying later in the day, but technical indicators indicate that these would be fickle as markets are likely to see some selling pressure at every rise.
 
Pattern Analysis of Nifty’s Daily High Low Chart indicates that Market is approaching its import support line albeit of a bearish formation. Supports are expected,  in case of weakness , in the range of 8056 8020 levels.  The formation on this chart is Descending  Triangle as seen in the Chart which is a bearish formation. Therefore expect every rise in the market to meet with selling spree.
Important Indicator MACD is  is bearish since it is trading below its signal line.The MACD crossed below its signal line 2 periods ago. Another important Indicator RSI also does not draw a rosy picture for today as  it has exhibited Failure Swings (also known as support or resistance penetrations or breakouts) The RSI has just reached its lowest value in the last 14 periods.  This is bearish.

Overall, from the above explained Technical  Analysis of the Nifty for today, markets are expected to continue its depressed trend today also.  Occasional bouts of buying will meet with selling pressure.

It is therefore strongly advised to be extremely vigilant at every rise in the market today, to avoid getting trapped in occasional bouts of rise in the market.  Continuance of highly cautious outlook is advised for the day.

Milan Vaishnav,

Consulting Technical Analyst,
Af. Member: Market Technicians Association (MTA), USA
Af. Member:
Association of Technical Market Analysts, INDIA

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