June 2019 Wrap < Monthly > View July 2019

 

The month of June is lackluster both in terms of front line indices and sectoral performance. Nifty closed with a downtick of 0.90%. The broader market is weaker as reflected in the below-given dashboard. This broader weakness is also corroborated by the falling AD line that I have repeatedly referred to in my daily commentaries.

 

Source – NSE India

 

 

Nifty Intermediate Term

 

The Nifty is trading sideways with one dip in April-May months and June month was also no exception. Two broad ranges are at work – 11850 to 12050 & 1160 to 11850.

 

Nifty Daily

 

Nifty Long Term

 

The long term is where things get interesting. The bearish divergences still hold and RSI already had a bearish crossover last week. This week, prices closed broadly flat. This has made the PPO move closer to a negative crossover. Any meaningful correction will only happen when Nifty starts trading below 11650.

 

Nifty Weekly

 

 

 

Nifty Long Term

 

On the monthly timeframe, price is at the top end of the rising wedge which normally resolves in a bearish manner. There is a sort of Double Top after the Hanging Man formation last month. Here also 11650 is the pivot which if breaks will start the ball rolling in the downside.

 

Nifty Monthly

 

 

All in all, the bearish biases on the charts still persists as we have discussed in detail in the May month outlook. (Click here to read). Stay in cash, wait for a correction to enter.

 

 

 

 

June 2019 Wrap < Monthly > View July 2019
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