NIFTY today was unexpected. Dow and foreign markets closed yesterday by almost a 1% or more and it was expected that our markets will react positively to it but it couldn’t. In the morning market opened almost flat and was as boring as Radio Jockey’s commentary because you feel irritated whenever you listen them while your favorite song is been played. Almost all the frontline stocks were negative. Today, on the later hours of the market, it broke our Rectangular consolidation pattern to close at 5447 which is our crucial support (5442) for Head and shoulder. RSI , Stochastic and MACD all are pointing towards the bear phase for the market. All the moving averages were broken down to close below them. Tomorrow RBI policy is a major concern for the markets momentum. I feel market has already discounted 25bps hike so if the same is announced the market may react positively to it otherwise we might see our next crucial support at 5360 which is projection on the breakout of rectangular pattern. On the stock side today, SBIN and other banks were discounted in favor of policy today. TATA MOTORS was like Yusuf Pathan who played extremely good but not good enough to bring NIFTY positive as he could not win series for India against SA last year with his blistering 120 in finals. So strategy for NIFTY would be wait and watch for the crucial levels 5360 or completion of Head and Shoulder at 5609 (neckline) as the graph above.
NIFTY levels for 16th June:-