Wednesday, April 27, 2011

Daily Market Trend Guide -- Wednesday, April 27, 2011

MARKET TREND FOR TODAY


Taking cue from weak technicals, the Markets opened weak yesterday and also expectedly dipped deep into the red but saw a very smart recovery in the second half of the session to close with nominal losses and in the process have still formed a lower top and sharply lower bottom.

Technically speaking, since the Markets have closed near the high point of the day, it is expected to open on a positive note and trade positive at least in the initial trade.

With the Markets expected to open on a positive note, this is also going to be supported with the stable and positive global markets. However, the intraday trajectory that the Markets forms and its behavior vis-à-vis the levels of 5900 and 5944 shall decide the trend for the day as they will act as resistance levels.

The RSI—Relative Strength Index on the Daily Chart is 58.6475 and is neutral as it shows no negative divergences or a failure swings. The Daily MACD however remains negative and bearish as it trades below its signal line.

On Candles, again  A Spinning Top occurred given the minimal difference in the opening and closing values of the Markets. This is a potential of the prices losing momentum.

Given all this technical reading and also given the important announcements awaited in US and also given the fact that today is the penultimate day of expiry of the current series, we may see tentative moods in the markets and there are chances that the Markets may take some breather around 5900 levels in case of buoyant opening.

All and all, it is still advised to remain stock specific and protect profits at higher levels and longs should be cautiously initiated on very selective basis only above 5900 and sustainable up move shall occur only above 5944. Positive caution 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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