MARKET OUTLOOK FOR THURSDAY, JUNE 08, 2017
The Markets on Wednesday continued to post modest upsides as
the benchmark NIFTY50 ended the day with net gains of 26.75 points or 0.28%.
The Markets reacted to the RBI’s Credit Policy Review while the central bank kept
the key rates unchanged and cut the SLR by 50 basis points. On expected lines,
this remained a non-event. Coming to the technicals, the Markets continue to
hang in precarious balance. It has been trying to avoid the minor corrective
movement which is imminent and overdue. We reiterate high amount of caution and
recommend market participants to continue to focus more on protecting profits
at higher levels than fresh buying.
On Thursday, the levels of 9680 and 9710 will act as likely
resistance levels. Supports will come in at 9610 and 9560 zones.
The Relative Strength Index – RSI on the Daily Chart is 68.6476
and it is neutral showing no divergences on either side against the price. The
Daily MACD is bullish as it trades above its signal line. However, it is moving
towards a negative crossover given its trajectory. On
Candles, a long lower
shadow occurred. This occurred after a bearish engulfing line which occurred on
the previous day. There are all chances that the current up move may be halted temporarily.
All and all, we reiterate approaching Markets with extremely
caution. Though major downsides may not be there but some amount of corrective
action is very much likely. If the Markets continue to post up move, more
emphasis should be laid on protection of profits at higher levels and fresh
purchases should be kept moderate. Continuance of cautious outlook is advised
for the day.
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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