*Market Outlook for Monday, 06/07/2020*
Within rising channel, from the low of 8806, Nifty has started moving upward forming rising wedge pattern. Currently the upper band resistance of it comes to 10704 and lower band support at 10478 level. Either side breakout will give indication of future trend.
On Friday after moving in a narrow range between 10562 – 10631, Nifty closed 56 points up at 10607 forming bearish hanging man pattern, which is a reversal pattern in nature signaling possible correction in the market.
Oscillators – currently stochastic is quoting in overbought zone at 91 while RSI at 68.
Now on Monday if Nifty doesn’t cross its Friday’s high of 10631 and breaks Friday’s low of 10562, than it may enter in to short-term correction and expected to come down to 10478 where we may see buying in the market, but if it breaks it than may slide towards next support of 10396 where heaving buying is expected.
On other side if it doesn’t break 10562 and crosses 10631 than may go up to 10704 and above that 10751 where heavy selling is expected.