MARKET TREND FOR
TODAY
August 17, 2012
The Markets had an expected trend yesterday as it opened on
a moderately positive note, but soon dipped into the red and correct on minor profit
taking to end the day with modest losses. The Markets opened and gave its
intraday high of 5390.65 in the early minutes of the trade. Thereafter, the
Markets spent the session in a very narrow range and also remained volatile.
After trading nearly flat for the most part of the session, the Markets gave up
towards the end as it gave its day’s low of 5356.55. It finally ended the day
at5362.95 posting a modest loss of 17.40 points or 0.32%. It has formed a
similar top and higher bottom on the Daily High Low Charts.
For today, expect the Markets to open on a mildly negative
to flat note again and continue with the consolidation / minor correction that
we witnessed yesterday. The Markets shall continue to depend upon the intraday
trajectory that it forms and the trend would remain dominated by it and it also
expected remain volatile and also range bound.
The Markets have not moved past the range of 5377-5400 and
these levels would continue to remain immediate top for the Markets. The
supports come in at 5340 and 5290 levels.
The RSI—Relative Strength Index on the Daily Chart is
63.5192 and it is neutral as it shows no negative divergence or failure swings.
The Daily MACD continues to trade above its signal line.
The signs of consolidation / minor correction and the
credibility of the resistance of 5375-5400 levels was evident yesterday as the
NIFTY and Stock Futures have reported minor decrease in total open interest.
The levels mentioned above shall, thus, continue to act as
immediate top for the Markets, and as mentioned in our yesterday’s edition, the
sustainable up move shall occur only after the Markets moves past these levels.
Until then, no runaway rise is expected in the Markets.
All and all, with range bound movement and minor corrective
movements are likely to continue, it is advised to continue with stock specific
activities and adopt a very selective approach while protecting profits wherever
possible. Aggressive positions on either side should be avoided as there are no
directional triggers. Overall, continuance of cautious approach is advised for
today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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