Nifty – 14 June 2016

Pressure on global markets is mounting, with Japan, HK and Europe looking especially bearish. The US is vulnerable but in a different market fase while the Nifty is somewhat bullish. Even though the Indian markets generally ‘go their own way’, the outlook elsewhere does warrant some caution in a general sense.

Purely technical the outlook broadly the same: a moderately bullish daily trend, but quite a bit of headwind and flimsy indicators on the weekly chart. In any case not a picture of unified strength and conviction. Holding some longs with trailing stops around 8015 or (max) 7875 is warranted. New buying is considered too risky.

Looks like difficult markets are here to stay for some time.

  • Primary trend: moderately positive
  • Outlook: unconvincing
  • Strategy: avoid or hold with trailing stops
  • Support: 8015 / 7875 / 7630 / 7405
  • Resistance: 8622* / 9120

Weekly chart NSE Nifty