MARKET TREND FOR TODAY
March 18, 2013
Markets remained in corrective mood on Friday as it opened
on a stronger and positive note but gave way as the session progressed and
ended the day with modest losses. The markets opened on a positive and stronger
note and the Markets gave its intraday high of 5945.65 in the early minutes of
the morning trade. After briefly trading into the green, the Markets pared its
gains to trade flat. It went on to dip into the negative in the afternoon
session and went on to give the day’s low of 5861. It made an feeble attempt to
recover once and also came off its day’s lows but again saw some pressure
building in and gave up towards the end. The Markets finally ended the day at
5872.60, posting a net loss of 36.65 points or 0.62% while forming a higher top
and higher bottom on the Daily High Low Charts.
Today, we are likely to see some weakness creeping in again,
at least in the opening trade in line with the global weakness seen. The levels
of 50-DMA has so far acted as a resistance at Close levels and is likely to
continue to do so. However, as per
pattern analysis, so long as the Markets continue to remain above 5800 levels,
it would continue to remain in pullback and it would continue with its attempt
of a reversal.
For today, the levels of 5800 is supposed to act as
important support. Any dip below this would make the Markets and make the
attempt of a reversal weaker.
The lead indicators remain neutral to mildly bullish. The
RSI—Relative Strength Index on the Daily Chart 49.6556 and it is neutral as it
shows no negative divergence or any bearish or bullish divergence. The Daily
MACD continues to remain bullish as it trades above its signal line. On the
Weekly note, the RSI is neutral and the Weekly MACD is bearish as it still continues
to trade below its signal line.
On the derivative front, the NIFTY March futures have shed
nominal 69250 shares or 0.46% in Open
Interest and therefore, no major offloading / unwinding of long positions have
been seen / reported.
The Markets may open and remain initially weak but there is
no breakdown on charts as yet. After making recent lows of 5663, the Markets
have seen a pullback and it is in an attempt to report a trend reversal. This
attempted is not likely to be dented by today’s weak opening, but at the same
time, it would be important for the
Markets to remain above 5800 levels so as to maintain a higher bottom that it
has give and continue with its attempt
of trend reversal.
All and all, the opening weakness is certain, but quantum
would depend on how much we show resilience and how much the Markets are likely
to improve as we go ahead in the session. Going as per technicals as of now,
the weakness shall be short lived and any such weakness should be utilized in
making selective purchases. However, cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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