MARKET TREND FOR TODAY
April 3, 2012
The Markets saw positive consolidation
yesterday quite on expected lines as it remained range bound and volatile but
ended the day on a positive note. The Markets opened on a moderately negative
note but gave its intraday low of 5278.80 in the very early seconds of the
trade. It recovered to trade in green soon but after trading in a capped range,
it pared all of its gains to trade in negative. However, the Markets recovered
in the afternoon trade and went on to give intraday high of 5331.55. Again, it
saw sudden paring of some gains but
recovered again to end the day at 5317.90, posting a modest gain of 22.35
points or 0.42%. In the process, it has formed a higher top and much higher
bottom on the Daily High Low charts.
For today, expect the Markets to open on a
positive note and trade positive at least in the initial session. The Markets
have 50-DMA at 5318 and it has resisted this levels at Close as it closed at
5317.90. After opening above this levels, it would be critical to see if the
Markets capitalizes on the positive opening.
For today, the levels of 5355 and 5400 are
the immediate resistance levels on the Charts and the levels of 5280 and 5265
are expected to act as immediate supports.
All lead indicators continue to remain in
place. The RSI—Relative Strength Index on the Daily Chart is 51.8571 and it
shows no negative divergence or failure swings as is therefore neutral. The
Daily MACD still continues to remain an trade below its signal line.
The trend of F&O Statistics remain
similar like that of previous session with NIFTY Futures shedding open interest
however Stock Futures have reported addition and rise in Open Interest.
We have been expecting the Markets to see
positive consolidation yesterday and that is what it happened and we also
expect this trend to continue to day. The Markets may see some range bound
movement as it inches up to 5400 levels and this may also see some volatility
ingrained in it. The most critical factor that would help the Markets on the
upside would be the ability of the Markets to sustain its positive opening and
capitalize on it. For this, the intraday trend that it forms post opening would
be critical.
All and all, with overall positive
consolidation expected, it is advised to refrain from shorts and continue
selective buying along with protection of profits at higher levels. Overall,
positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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