MARKET TREND FOR TODAY
March 06, 2013
The Markets
yesterday traded precisely on expected lines as
it did gave a pullback as indicated by the lead indicators and at the
same time, resisted to the prescribed levels and has begun an attempt to
reverse the trend. The Markets opened positive on back of strong global cues
and after trading with capped gains in the morning trade, it perked up further
and kept making gradual intraday highs. The Markets remained in upward rising
trajectory throughout the session. In the late afternoon trade, it went on to
give the intraday high of 5790.10. It finally ended the d ay near the high
point of the day at 5784.25, posting a decent gain of 85.75 points or 1.50%
while forming a sharply higher top and bottom on the Daily High Low charts.
Today, technically speaking, the Markets are expected to
open on a moderately positive note and continue with its up move at least in
the initial trade. This would be supported by the positive global cues. With
the Markets likely to open positive, intraday trajectory would be important as
it would dictate the trend for today. The Markets are likely to resist at its key levels while attempting a trend
reversal.
For today, the levels of 5820 is likely to act as important
resistance. The other level that it is likely to resist would be 5844.61, at
Close, which is the 100-DMA as of today. The Markets will have to move past
both of this levels, intraday and at close, for a trend to reverse. Otherwise,
it would merely remain a pullback with the continuing downtrend.
The lead indicators are neutral. The RSI—Relative Strength
Index on the Daily Chart is 41.5803 and is neutral as it shows no failure
swings or bullish or bearish divergences. The Daily MACD still continues to
remain bearish as it trades below its signal line.
On the derivative side, the NIFTY futures have shed nominal
open interest by 1.09 lakh shares or 0.66%. This signifies that there is no
major short covering seen in yesterday’s rally, nor any significant longs were
added.
Overall, the levels of 5810 and 5840 shall act key
resistance levels in coming days. The Markets have attempted a trend reversal,
but this would confirm only after the Markets moves past these levels after a
brief interim consolidation.
Al l and all, the immediate trend remains positive. The
Markets shall open and trade positive in the initial trade but is also likely
to resist to the key levels mentioned. It is advised to refrain from shorts as
undercurrent remains strong however, at the same time, keep protecting profits
at higher levels. Overall, positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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