MARKET TREND FOR TODAY
February 07, 2013
Yesterday’s session
in the Markets saw it consolidating fiercely in the broad trading range it has
been trading in as it opened positive and strong, but pared all of its gains to
end the day absolutely flat. The Markets opened on a positive note and made
some further gains in the morning trade as it gave its intraday high of
5990.90. In the late morning trade, in the second half of the session, the
Markets made its top and reversed its intraday trend. It gradually pared all of
its in the afternoon trade to trade flat. It made some gains again but only to
pare them later towards the end of the session. The Markets finally ended the
day at 5959.20 posting a negligible gain of 2.30 points or 0.04% while forming
a minor higher top and higher bottom on the Daily High Low charts.
Today, the Markets are likely to open on a flat note and
look for directions. The analysis for today remains more or less similar to
that of yesterday. The markets continue to remain in a broad trading range as
yet. It would be critically important for the Markets to trade above the levels
5940-5930 and maintain levels above these so as to avoid any kind of weakness
creeping into the Markets.
For today, the levels of 5940-5925 shall act as important
support for the Markets.
So far as lead indicators goes, the RSI—Relative Strength
Index on the Daily Chart is 44.5712 and it is neutral as it shows no failure
swings or bullish or bearish divergence. The Daily MACD is still bearish as it
still continues to trade below its signal line.
On the derivative front, NIFTY February futures have shed
nominal 1.39 lakh share or 1.07% in Open Interest.
Going by the above figures, there is nothing to on the
Charts to trigger a strong directional rally / breakdown on either side. The
Markets continues to remain in broad trading range with the levels of 5940-5925
levels acting as major supports. Markets shall see further weakness creeping in
only if these levels are breach on the downside. Until then we will continue to
see the Markets continue to consolidate in
the broad trading range.
All and all, we may see the Markets continue to consolidate
and as mentioned earlier, it would be critical to see that the Markets
maintains the levels above 5940-5925 in order to avoid any further weakness
creeping in. At the same time, it is likely to continue to consolidate and
remain little volatile. Given this situation, it is advised to remain light on
the positions and remain very selective in making new purchases while
vigilantly protecting profits on higher levels. Cautious outlook is advised for
today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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