Thursday, November 15, 2012

Daily Market Trend Guide -- Thursday, November 15, 2012

MARKET TREND FOR TODAY                                                November 15, 2012
The short session of the Mahurat Trading remained under pressure on Tuesday as the Markets continued to reel under pressure in the entire hour and half long trading session and ended the day with moderate losses. The Markets opened on a negative note and continued to remain negative in the entire trading session. The Markets traded negative in the capped range and towards  the end, slipped further to give the day’s low of 5660.35. It did not recovered at all and finally ended the day at 5666.95, posting a moderate loss of 16.75 points or 0.29%, forming a lower top and lower bottom on the Daily High Low Charts.

Today, after a holiday yesterday , expect the Markets to open on a mild to moderately negative note. There is no structural strength seen on the Charts and therefore, the view on the Markets continue to remain neutral to negative with a downward bias. The levels of 5730 have again held out as resistance so far and it is likely that the Markets tests the support levels of 5630 again.

Today, the levels of 5700 and 5730 is likely to act as resistance and the levels of 5630 and 5610 are likely to  act as supports.

The lead indicators continue to remain neutral to negative. The RSI—Relative Strength Index on the Daily Chart is 49.7985 and it is neutral as it shows no failure swings or bullish / bearish divergence. The Daily MACD continues to remain bearish again as it trades below its signal line.

In the Tuesday’s session the NIFTY Futures have shed 0.60% in Open Interest. This indicates moderate unwinding of positions in the NIFTY. Same trend has been seen with stock futures.

Overall, as we have been mentioning in our last couple of editions of Daily Market Trend Guide, no sustainable up move is likely to occur until the Markets moves past the levels of 5730 and upwards. Further, this will keep the Markets in a broad range with the support of 5630 and any breach of these levels will see  the Markets getting weaker.

All and all, the Markets shall continue to trade in a capped range with downward bias until its moves past the levels mentioned. Until this happens, there remains a theoretical possibility of the Markets testing the supports of 5630 again. It is advised to continue to remain very selective in taking fresh positions as sectoral outperformance would be seen. Neutral to cautious outlook is advised for today.

Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331


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