MARKET TREND FOR TODAY
November 29, 2012
The Markets remained shut yesterday on account of “Gurunanak
Jayanti” . On Tuesday, the Markets had a extremely buoyant session as it opened
positive and remained in positive territory all throughout the session ended
the day on a very strong note. The Markets opened positive and kept making new
intraday highs during the day. Towards the end of the session, it gave an
intraday high of 5733.20. It maintained those levels until the end of the
session and ended the day on a very buoyant note at 5727.45, posting a strong
gain of 91.55 points or 1.62% while forming a sharply higher top and higher
bottom on the Daily High Low Charts.
Today, the Markets are expected to open on a flat note and
look for directions. The Markets have resisted to its resistance levels of
5730 and if it opens below this, then
this level might act as resistance. On the upside, this may act as supports but
the Markets still continue to remain in a broad trading range, the upper end
being the 5800-5820 levels. Thus, the opening of the Markets and the intraday
trajectory it forms shall continue to play critical roll in deciding the trend for today.
The levels of 5730 and 5800 shall act as resistance and the
supports come very low at around 5630
and 5575 levels.
The RSI—Relative Strength Index on the Daily Chart is 60.3629
and it is neutral as it shows no negative / positive divergence or failure
swings. The MACD has turned bullish as it has reported a positive crossover and
it now trades above its signal line.
Having said this, it is important to note that today is the
expiry day of the current November Derivative Series and the session is likely
to remain heavily dominated with rollover centric activities. The Markets have
continued to remain in a very broad trading range and it has not been out of it
as yet.
All and all, in case of negative opening, 5730 shall pose a
resistance and in case of positive opening 5800 shall pose important and major
resistance to the Markets. In the initial session, the opening levels of the
Markets and the intraday trajectory that it forms thereafter shall be critical
for today.
Overall, mildly positive session can be expected. The
session is also likely to remain volatile owing to rollovers and the Markets
may still continue to remain in a range. Selective purchases may be made and sectoral
out performance may be seen. However, it is strongly advised to remain highly selective and keep
protecting profits on either side of the trade.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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ReplyDeleteAs per Federal bank technical research report one should go short in this
ReplyDeletecounter. Federal bank is looking quite weak at current level and is expected to fall
further. Positional traders can go short in Federal bank from current level for good
gains.