Wednesday, July 6, 2011

Daily Market Trend Guide -- Wednesday, July 06, 2011

MARKET TREND FOR TODAY
The Markets yesterday though remained resilient, continued to show signs of consolidation as it moved in a very narrow intraday range though it recovered from its lows to end the day with modest losses. However, in this process, the Markets have formed a lower top and lower bottom on the Daily High Low Charts.

For today, the consolidation is expected to continue with the Markets opening on a flat note and looking for directions with the overall downward bias. With the Markets expected to open on a flat note, the levels of 5660 and 5700 shall continue to act as resistance and the supports are expected to come in only at 5580 and 5520 levels.

The RSI--Relative Strength Index on Daily Chart is 61.3073 and is neutral as it shows no negative divergence or failure swings. The Daily MACD still continues to trade above its signal line. On the Candles, the last three candles shows overall pattern as generally bearish.

As mentioned in our earlier editions, the fresh up move shall occur only above 5700 levels and until this happens it is advised to continue with extremely stock specific selective approach while vigilantly continuing to protect profit at higher levels as the Markets may see its 100 and 50 DMAs of 5553 and 5510 if it corrects. Thus, overall, highly stock specific and cautious outlook 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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