Gemstone Equity Research & Advisory Services

Tuesday, April 26, 2011

Daily Market Trend Guide -- Tuesday, April 26, 2011

MARKET TREND FOR TODAY

The Markets yesterday spent the day in a very narrow range and ended the day with modest losses and in the process have formed a lower top and lower bottom on the Daily High Low charts.

Technically speaking, since the Markets have closed near the low point of the day, they are expected to open weak and trade negative, at least in the initial trade.

However, the markets are expected to open on a flat to mildly negative note again and look for directions.

For today, with the Markets expected to open flat to mildly negative, the levels of 5855 are expected to be critical levels to watch for and the behavior of the Markets vis-à-vis this levels shall decide the trend for the day. The levels of 5900 and 5925 shall act as resistance and the levels of 5830 and 5770 shall act as supports.

The RSI—Relative Strength Index on the Daily Chart is 59.1847 and is neutral as it shows no negative divergence or failure swings. The Daily MACD remains bearish as it trades below its signal line.

On the Candles, A Spinning Top has occurred. During a rally or near highs, such formation signals a potential weakness and the loss of momentum.

Apart from the above reading, there is a falling trend line drawn from the top of 6135 levels joining two tops and this line meets the value of 5855 today. If the Markets slips below this level, it may bring in further weakness.

All and all, there are chances of the Markets continuing to consolidate and remain direction less and weak with a bias towards downside. Also, for any sustainable up move, the Markets will have to move past the levels of 5944. It is thus advised to continue with the stock specific approach with protection of profit at higher levels. Outlook with high degree of caution is advised for today.

Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331

milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com

Monday, April 25, 2011

Daily Market Trend Guide -- Monday, April 25, 2011

MARKET TREND FOR TODAY

The session on Thursday remained positive but traded in a very narrow range and came off its highs to end the day with moderate gains but in the process have formed a higher top and higher bottom on the Daily High Low Charts.

One of the minor negative for the Markets is that it closed after it came off from its highs. For today, expect the Markets to open on a flat to mildly negative note and look for directions. As it is the case during previous sessions, the intraday trajectory that it forms shall be critical to decide the trend for today as well as for coming week.

For today, with the Markets expected to open on a flat to mildly negative note, the levels of 5944 shall continue to act as immediate top and thereby resistance, The supports exists at 5840 and 5795.

The RSI—Relative Strength Index on the Daily Charts is 60.0384 and is neutral as it shows no negative divergence or failure swings. The Daily MACD however, continues to be bearish as it trades below its signal line.

On the Candles, there are mixed signals. On one hand, A Doji Star occurred. This often signals a reversal of pattern, however, a confirmation is required. On the other hand, A Rising Window occurred. This is a potentially bullish sign.

Going by Chart pattern Analysis, there is a strong resistance in the 5944-5950 range and for any sustainable up move, the markets will have to move past and sustain above those levels.

All and all, with the sustainable up move coming only after 5944-5950 levels, highly stock specific and cautious approach is advised for today that too with policy of continuation of protection of profits at higher levels. Today, as volumes have remained a concern, there are chances of Markets forming a negative trajectory later, after some time of opening. Stock specific cautious approach advised for today.