6 June 2016


After opening on flat note, indices were stuck in a narrow trading range throughout the day. Finally, the Sensex ended with a loss of 66 points at 26777. The Sensex opened at 26898 touched an intra-day high of 26901 and low of 26729. The Nifty closed with a loss of 20 points at 8201. The Nifty opened at 8229 hitting a high of 8235 and low of 8186.
As the Nifty has risen significantly in the last few sessions, investors now keenly wait for signals from market-moving events such as the RBI policy meet, the US Fed decision, India's monsoon data and most importantly, the Brexit referendum later this month.
Market may correct if RBI keeps status quo on rates.
Technically on hourly charts some divergence appears on momentum indicator RSI and Price action of Nifty Future which will may be early sign of correction and trading below 8150 will nifty lower to 8070-8100.

An emphatic breach of the key support at 8100 can strengthen selling pressure and pull the contract down to 8050 and 8100 levels.
Strategy: In a sideways movement. Tread with caution
SUPPORT:   8180, 8150

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