Thursday, June 22, 2017

MARKET OUTLOOK FOR THURSDAY, JUNE 22, 2017

MARKET OUTLOOK FOR THURSDAY, JUNE 22, 2017
Narrow movements of the Indian Equities continued on Wednesday as well as the benchmark NIFTY50 recovered most of its losses to end yet another day with modest loss. The NIFTY ended the day after losing 19.90 points or 0.21%. The recover that the Markets saw in the last hour of the trade can be attributed to short covering that was witnessed. On Thursday, a subdued opening is expected. Speaking purely on technical terms, the NIFTY once again tested its short term 20-DMA and this level will remain important to watch for if we take a very short term view.

The levels of 9690 and 9725 will act as immediate resistance on Thursday while the supports will come in at 9580 and 9510 zones.

The Relative Strength Index – RSI on the Daily Chart is 59.1365 and it continues to remain neutral showing no divergences on either side. The Daily MACD continues to remain bearish as it trades below its signal line. No significant formations were observed on Candles.

On the pattern analysis front, the NIFTY is seen drifting from the support of the rising trend line that is drawn from 9200 levels. However, important factor is that it tested its short term 20-DMA and this level will remain important to watch for.

Overall, until the Markets resume its up move, we reiterate that Markets should be approached with highest levels of caution. From any time now on, the NIFTY is set to see a sharp movement over coming days on either side. This is suggested by the Bollinger Bands which are currently over 64% narrower-than-normal. This is caused by drop in volatility over previous days and can result into sharp movement on either side. Preservation of cash is advised until a directional bias is established.

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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