Saturday, June 11, 2016

Weekly Review - 13th June, 2016

Dear All,


Investors are likely to remain cautious ahead of key macro economic data and the outcome of the US Federal Reserve meet. Meanwhile, worries that Britain, in a referendum on June 23, may vote not to be a part of the European Union would continue to weigh on sentiment.

The Reserve Bank of India at its bi-monthly policy review early this week kept key policy rates unchanged amid inflation concerns but maintained an 'accomodative' monetary policy stance going forward. The repo or the repurchase rate was unchanged at 6.50% on the back of higher food inflation and amid expectations of a rate action by the US Federal Reserve. The central bank has also kept the Cash Reserve Ratio (CRR) unchanged at 4%.

Meanwhile, Index of Industrial Production (IIP) for April was weaker-than-expected after it contracted to -0.8% as compared to 0.1% in March 2016 with manufacturing sector contracting to -3.1% compared to -1.2% in the previous month.

Outlook

Apart from the global events such as the US Fed meet, macro economic data such as the wholesale price index and consumer price index for May 2016 along with the progress of the monsoon will dictate market trend.

Investors will also be keenly awaiting the commentary from the US Fed at the conclusion of its two-day policy meet which ends on Wednesday, June 15.

Further, announcements by the Indian Meteorological Department regarding the progress of monsson will also be in focus.



>>> Nifty Weekly Chart <<<

>>> Click the chart to see on full screen <<<

An Inverted Hammer formed near the Key Resistance Zone - Should really be a cause to concern for Bulls. One should take care of their longs. A flow of bad news from any side may trigger fresh sell off from all front. Above 8290 Bulls may try to roar again.

>>> Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

Price unable to cross above the Channel and Hold above 8268 - Signals Bearishness. We have short Position and looking for a Good Correction.

>>> Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

Hourly chart suggest - end of wave 3 or C. Hence a possible correction till 8075 or near 8006. We have short position from 8235 and holding for a good correction.

>>> Bank Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

Looks like bank Nifty end its rally near 18050 and started falling. Below 17800 may test 17650 or even 17410 soon.

>>> Maruti - Hourly Chart <<<

>>> Click the chart to see on full screen <<<

Maruti - We are short from 4150 and holding for a good correction. Price if breaks the trend line or 4100 - More fall likely.

>>> N4A <<<


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