Wednesday, April 13, 2011

Daily Market Trend Guide - Wednesday, April 13,2011

MARKET TREND FOR TODAY

The Markets continued to remain weak and correct as analyzed in our Monday’s edition and closed with losses and in the process continued to form a lower top and lower bottom on the Daily High Low Charts.

Again, the Markets have closed near the low point of the day, and technically speaking, the Markets are likely to open on a weaker note and look for directions.

For today, technically, as well as taking cue from weak global markets, the Markets are likely to open on a lower note and would again be continued to be dictated by the intraday trajectory that it forms.

With negative opening expected in the Markets, the levels of 5825 and 5840 shall act as resistance on the upper side and the levels of 5720 and 5700 shall act as supports.

The RSI—Relative Strength Index on the Daily Chart is 58.5384 and is neutral as it shows no negative divergence or a failure swing. The Daily MACD continues to trade above its signal line but is getting weaker steadily.

On the Candles, the steady downward pattern continues to remain bearish.The Markets have turned weak after getting OVERBOUGHT couple of days back. Technically speaking, the Markets have reported negative cross over of averages (100 & 200 DMA) which is the technical sign that the Markets may remain weak in the immediate short term. Also, the immediate supports are only around 5700-5720 levels and thus, there are all chances that Markets may see those levels. However, some short covering may seen intraday as there are shorts in the system but steady chart pattern remains weak in the short term.

All and all, it is advised to continue to remain highly stock specific in taking longs while strictly protecting profits at any higher levels. Fresh longs either in NIFTY or it s components may be taken only there is a potential reversal in form of a higher top and higher bottom. Continuance of 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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