The Nifty50 index Futures started the June series on a weak note. Further, it failed to take out 61.8 percent Fibonacci retracement level placed at 10,745 after three attempts which lead to corrections.
A sustained trade below 10,540 can extend the weakness and drag the index lower to levels of 10,320-10,200. However, a trade above 10,750 i.e. 61.8% Fibonacci retracement level can resume the uptrend taking it to levels of 10,835-10,900.
On the daily chart, Godrej Agrovet Ltd is on the verge of a breakout from a bullish Flag pattern suggesting bullishness dominant in the stock.
Further, the stock has taken support at the 38.2% Fibonacci retracement levels and volumes have declined within the Flag suggesting a temporary pause before it resumes the uptrend.
The RSI has turned upwards breaking out of the upper Bollinger Bands suggesting extended bullishness in the coming trading sessions. The stock may be bought in the range of Rs 644-648 for targets of Rs 680-695, and a stop loss below 625.
The markets on Tuesday are trading lower as they focus sed the Reserve Bank of India's (RBI) second monetary policy review of 2018-19. The policy decision is due on Wednesday, June 6.
An increasing number of economists expect the Reserve Bank of India (RBI) to raise interest rates on Wednesday, a Reuters poll found, but most still think the central bank will stay on hold and use this week’s meeting to prepare for an August hike.
Among macro data, activity in India’s service industry shrank in May for the first time in three months as new orders stagnated, but business optimism was the highest since 2015 on expectations that demand will turn around, a business survey showed.
The Nikkei/IHS Markit Services Purchasing Managers’ Index fell to 49.6 in May from April’s 51.4, sinking below the 50-mark that separates growth from contraction.
An increasing number of economists expect the Reserve Bank of India (RBI) to raise interest rates on Wednesday, a Reuters poll found, but most still think the central bank will stay on hold and use this week’s meeting to prepare for an August hike.
Among macro data, activity in India’s service industry shrank in May for the first time in three months as new orders stagnated, but business optimism was the highest since 2015 on expectations that demand will turn around, a business survey showed.
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