Tuesday, June 27, 2017

MARKET OUTLOOK FOR TUESDAY, JUNE 27, 2017

MARKET OUTLOOK FOR TUESDAY, JUNE 27, 2017
The session on Friday remained disappointing as the Markets continued to correct much on expected lines. The NIFTY50 ended the day with a net loss of 55.05 points or 0.57%. Markets will open on trade on Tuesday after a extended weekend following a public holiday. We expect a modestly positive start to the Markets. Global set up has remained positive and there can be likely positive adjustments in the Indian Equities as well. However, as of now, the zones of 9700-9725 have firmly established themselves as a temporary top to the Markets.

On Tuesday, the levels of 9610 and 9645 will pay out as immediate resistance levels. The supports will come in at 9550 and 9510 zones.

The Relative Strength Index – RSI on the Daily Chart is 51.0343. It has marked a fresh 14-period low and this is bearish. The Daily MACD stays bearish as it continues to trade below its signal line. A  big black candle that occurred reinforced the credibility of the resistance area at 9625-9650 zones.

The pattern analysis show the NIFTY has breached its short term 20-DMA and it also now trade below its rising trend line which as acting as support as of now. In event of any pullback, this area is likely to act as resistance.

Further to this, beginning Tuesday, we enter a shortened expiry week we will see actions remaining heavily dominated with rollover centric activities. However, we expected some stability in the Markets to return but very narrow Bollinger bands still keep Markets exposed to some sharp movement. Volatility is likely to persist and we recommend preserving cash and adopting cautious outlook on the Markets.

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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