Thursday, June 15, 2017

MARKET OUTLOOK FOR THURSDAY, JUNE 15, 2017

MARKET OUTLOOK FOR THURSDAY, JUNE 15, 2017
The Markets saw a sharp recovery from the low point of the day and recovered all of its intraday losses on Wednesday to end the day with minor gain of 11.25 points or 0.12%. We expect a quiet start to the Markets tomorrow. Further to this we do not expect any run-away up move in the Markets as the recovery that we saw on Wednesday has been evidently due to short covering from lower levels. Since the NIFTY took support at its short term 20-DMA, this level will continue to play out as support in the near term and the zones of 9570-9600 will remain critical to watch out for.

The levels of 9640 and 9675 will act as resistance in the coming session. Supports come in at 9570 and 9510 zones.

The Relative Strength Index – RSI on the Daily Chart is 60.4025 and remains neutral showing no divergences against the price. The Daily MACD continues to remain bearish. On the Candles, a candle with a long lower shadow has emerged with a spinning top. The long lower shadow remains significant as it has occurred near a support. It is likely to potentially halt the decline. However, this need confirmation in the following session.

Going by pattern analysis, the NIFTY has so far managed to cling on to its short term pattern support of 20-DMA. So long as it manages to hang on above this, we will see ranged consolidation continuing.

All and all, there is evident tentativeness in the Markets. In the immediate short term, we see higher chances of minor corrective activities to continue. The levels of 9570-9600 will be important because any dip below this will bring in some more weakness in the immediate short term. We will see sectors being rotated and stock specific out-performance will be seen.

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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