MARKET TREND FOR TODAY
September 10, 2012
The Markets had a truncated short session on Saturday to
test the NSE’s backup systems. Normally such sessions are often directionless
and listless but this session on Saturday remained buoyant as it remained in
one upward direction with buying seen as the Markets ended with modest gains.
The Markets opened on a positive note and remained so for the rest of the
session. The Markets saw more strength towards the end of the session as it
went on to give its day’s high of 5366.30. It finally ended the day at 5358.70,
posting a modest gain of 16.60 points or 0.31%. It has formed a higher top and
higher bottom on the Daily High Low Charts.
Today, expect the Markets to open on a flat to mildly
positive note and look for directions. Technically speaking, Markets are
expected to open positive as continue with its up move as they have ended the
previous session near the high point of the day. Thus, positive opening can be
expected but intraday trajectory would equally be important.
For today, the levels of 5380 and 5400 would continue to
pose immediate resistance to the Markets.
The RSI—Relative Strength Index on the Daily Chart is 57.3931
and it is neutral as it shows no negative / positive divergence or failure
swings. The Daily MACD still continues to trade below its signal line. The
Weekly RSI too is neutral at 56.3420. The Weekly MACD is bullish as it trades
above its signal line.
The NIFTY and Stock Futures have continued to add in net
Open Interest.
The overall reading of the lead indication and F&O
statistics can be that the bias of the Markets can be neutral to mildly
bullish. However, the levels of 5400 shall continue to remain a important
pattern resistance, the levels from where the Markets had corrected last time.
So, significant up move shall occur only after the levels of 5400 are breached
on the upside. We may again see the Markets consolidating at those levels.
All and all, mildly positive bias can be maintained. The
levels of 5400 will continue to pose immediate resistance and thus,
continuation of selective approach in the Markets is advised along with
protection of profits at higher levels. Shorts should be avoided. Overall,
positive approach with tinge of caution is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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