MARKET TREND FOR TODAY
November 30, 2012
Unabated rise continued in the Markets yesterday, even on
the expiry day with volatility totally absent as the Markets ended the day with
yet another robust gains. The Markets opened on a positive note and maintained
its upward rising trajectory all throughout the session. The Markets kept
giving new intraday highs as the session progressed. Towards the end, the
Markets went on to give its 52-week high of 5833.50, touching the upper end of
the broad trading range it has been trading in. It finally ended the day at
5825, posting a gain of 97.55 points or
1.70% forming a sharply higher top and higher bottom on the Daily High Low
Charts.
Today, expect a quiet opening in the Markets and it would be
very critically important to see if the Markets maintains the levels above of
5815 which is the upper end of the broad trading range it has been trading in.
If the Markets are able to maintain levels above 5815, it would attempt to give
a new break out on the upside, but at the same time shall get almost
overbought.
For today, the levels of 5870 and 5940 are the two immediate
resistance levels. Supports come in much lower at 5730 levels.
The RSI—Relative Strength Index on the Daily Chart is 68.4086
and it has reached its highest value in last 14-days which is bullish. The
Daily MACD too is bullish as it trades above its signal line.
Having said this, it is important to note that the Markets
have risen near 5% or over 200 points in last 2-3 sessions some consolidation /
correction is overdue in the Markets. Further, it is important to note that any
further such rise that we saw in last two sessions would make the Markets “Overbought”.
So, the opening levels in the Markets and its trading above
the levels of 5815-5820 would be critical to watch for. It would attempt to
give a upward breakout if it tries to move past 5820 again but at the same
time, due to reasons mentioned above, there are equal chances that some minor
correction sets in.
All and all, even though lead indicators remain buoyant,
some profit taking can be witnessed later in the day and the possibility of
paring of some gains cannot be ruled out. It is strongly suggested to now
refrain from taking any aggressive long positions and protect profits on the
long positions. Any continued rise in the manner witnessed in last two days
shall make the Markets “overbought” and unhealthy. Extremely cautious outlook
is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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