MARKET TREND FOR TODAY
February 12, 2013
The Markets had an
absolutely directionless session yesterday as it headed nowhere and continue to
trade in a capped range while continuing to add shorts in the system while
ending the day flat with negligible losses. The markets opened on a moderately
positive note but soon drifted into the red after initial minutes of positive
trade. In the later part of the morning trade, it went on to give the day’s low
of 5879.10. However, the second half of the trade saw the Markets recovering
from its lows. It recovered to trade back into the green and also went on to
give the day’s high of 5924.15. This too was not sustained as the Markets pared
those gains again to dip into the red. It finally ended the day at 5897.85,
posting a net loss of 5.65 points or 0.10% while forming a lower top and lower
bottom on the Daily High Low Charts. The volumes remained dismal.
Today’s analysis remains more or less similar to that of
yesterday. The markets are expected to open flat again and look for directions.
It would continue to remain on a weaker bias due to two things. One would be
lack of volumes and the other would be trading below 5950. The Markets will
require volumes and will also require to trade above 5950 to regain the lost
strength. It is also expected to react to the IIP numbers which shall come in
later today.
For today, the levels of 5950 and 5990 shall act as
resistance and the supports shall come in at 5870 and 5818 which is the 100-DMA
for the Markets.
The lead indicators continue to remain sluggish. The RSI—Relative
Strength Index on the Daily Charts is 37.0025 and it has reached its lowest
value in last 14-days which is bearish. However, it does not show any bearish
or bullish divergence. The Daily MACD too still continues to trade below its
signal line.
On the derivative front, NIFTY Futures have continued to add
shorts. The NIFTY Futures have added over 1.12 lakh shares of 0.87% in Open
Interest.
All and all, the Markets shall remain sluggish until they
reverse and move past the levels of 5950 levels. This would require
participation and therefore volumes to move past and sustain above these
levels. Until this happens we shall continue to remain sluggish with selective
out performance. Given the shorts being added, they are likely to act as
cushion at one point of time. Very selective and cautious approach is advised
for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.