MARKET TREND FOR TODAY
July 25, 2012
The Markets showed some resilience yesterday after Monday’s
terribly weak show as it ended the day with nominal gains after the initial
weakness. The Markets opened on a moderately positive note and traded positive
in a capped range in the morning session.
However, in the mid session, it dipped into negative as it saw a bit volatile
paring of gains. It went on to give day’s low of 5103.25. Again, it saw a
equally sharp rise as it not only recovered its losses, but went into positive
territory and also further went on to give the day’s high of 5144. It finally
managed to end the day at 5128.20, posting a moderate gain of 10.25 points or
0.20%. The volumes continued to remain higher than the average. The Markets
have formed a lower top and similar bottom on the Daily High Low Charts.
Today, again expect a flat opening in the Markets and the
analysis for today stands more or less similar to that of yesterday. The
Markets are within their filters of the earlier support and trade above two
critical supports of 200-DMA and 50-DMA. The key to avoid further weakness
would be the sustenance above these levels and for this, intraday trajectory
would play a critical role in deciding the trend for today. Also, today is
penultimate day for expiry of current series and thus rollover activities are likely
to dominate the trend for today.
For today, the levels
of 5102 and 5090 shall continue to act as major support at Close levels.
The RSI—Relative Strength Index on the Daily Chart is
43.4329 and it is neutral as it shows no negative divergence or failure swings.
The Daily MACD continues to trade below its signal line.
NIFTY has added 1.91
lakh shares in Open Interest whereas Stock Futures have added 3.94 Crores in
Open Interest. This signifies that there has been no short covering yesterday
and some long positions / rollovers too have been added.
All and all, continuation of yesterday’s trend likely. The
Markets shall remain in a range and there would be no structural breach unless
it breaches its critical levels mentioned above. Until them, aggressive long
positions and shorts should be avoided. Overall, selective approach with
positive optimism is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.