Tuesday, March 29, 2011

Daily Market Trend Guide -- Tuesday, March 29, 2011

MARKET TREND FOR TODAY


As mentioned above, the Markets  continued its up move for the fifth session in a row, though not as strongly as the previous session, but ended the day with moderate gains and in the process have continued to form a higher top and higher bottom on the Daily High Low Charts.

The Markets have Closed just below its 200 DMA of 5691 and this level would act as important resistance at Close levels.

For today, expect the Markets to open on a flat to moderately negative note and look for directions which would again depend upon the intraday trajectory that the Markets forms. For today, the levels of 5700 and 5744 shall act as resistance and the levels of 5640 and 5610 shall act as supports.

The RSI—Relation Strength Index on the Daily Chart is 61.9252  and it does not show any negative divergence. It has reached its highest value in last 14 days which is Bullish. The Daily MACD too continues to trade above its signal line.

At this juncture, it is important to note that the Markets have Closed just a notch below its 200-DMA and this is likely to act as resistance at Close. Secondly just above this level is the 100 DMA at 5744 which can also be considered as another resistance. Also, so far as the structure of the Chart goes, the 100 DMA is in the process of giving a negative crossover as it is likely to cut 200 DMA from above as the same is falling and the 200 DMA is rising.

All these readings suggests that the up move in the Markets may be capped for the short term and we may see some consolidation / correction creeping in as this is much required and also healthy for the Markets in the long run. It is thus advised that any long positions should be taken very selectively while continuing to protect profits at higher levels. Cautious approach is advised for today.


Milan Vaishnav, Consulting Technical Analyst, www.MyMoneyPlant.co.in   +91-9825016331 milanvaishnav@mymoneyplant.co.in milanvaishnav@yahoo.com

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