MARKET TREND FOR TODAY
March 08, 2013
Markets had a session perfectly as analysed in yesterday’s
edition of the Daily Market Trend Guide as the Markets opened moderately negative,
consolidated for half of the session and then staged a smart rally as it
continued its up move moving past its key resistance levels. After opening on a
moderately negative note, the markets traded in capped range 20-odd points in
the negative territory as it gave its intraday low of 5801.30. After moving in
this range for almost half of the session, the Markets staged a sharp and smart
rally. It went on to give the day’s high of 5878 and ended the day at 5863.30,
posting a smart gain of 44.70 points or 0.77%. The Markets continued to form a
higher top and higher bottom on the Daily High Low Charts.
For today, the Markets are likely to open on a flat note and
look for directions. There are chances that it takes some breather as it has staged a almost 200-point
pullback from its recent lows. However, with the undercurrent remaining
absolutely intact, the intraday trajectory would be important to watch for.
For today, the levels of 5890 and 5945 would be key
resistance levels to watch out for. The levels of 5942, the 100-DMA levels is
likely to act as support at Close levels above which the Markets have closed.
The lead indicators suggest that in spite of some
consolidation that we might see again, the trend remains buoyant. The RSI—Relative
Strength Index on the Daily Chart is 50.2003 and it has reached its highest
value in last 14-days which is Bullish. Also, RSI has set a new 14-day high
where as NIFTY has not yet and this is BULLISH DIVERGENCE. The Daily MACD too
which has been trading bearish since couple of weeks has reported a bullish
crossover as it now trades above its signal line as is therefore bullish.
On the derivative front, NIFTY Future shave added over 2.40
lakh shares or 1.43% in Open Interest and this is a bullish sign as it shows
that NIFTY has added further long positions. The NIFTY PCR stands at 1.05 as
against 1.
The above reading clearly shows that the Markets are most
likely to continue with its up move. If some consolidation happens, it is likely
to remain short lived before Markets resumes its up move again.
All and all, there are bright chances that the Markets
continues with its up move after flat opening or a brief consolidation. Even in
case of mild weakness, it would be for very short term as the under current
remains absolutely buoyant. Any weakness, as suggested yesterday also, should
be used to take fresh positions. However, while maintaining selective approach,
profits too should be protected at higher levels. Overall, continuation of
positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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