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

MARKET TREND FOR TODAY

After a lackluster trade for more than half of the session, the Markets suddenly saw a spurt, taking it higher and ended the day with smart gains, an in the process forming a higher top and higher bottom on the Daily High Low Charts.

The Markets are in the process of attempting a trend reversal and today is going to face a very critical test today.

Today, expect the Markets to open on a moderately positive note and look for direction. The intraday trajectory that it forms  and the volumes would play a critically important role in deciding the sustainability of the process of reversal attempt.

Today, with the Markets expected to open on a flat to mildly positive note, the levels of 5700 and 5720 are expected to act as resistance and the levels of 5650 and 5610 are expected to act as supports.

The RSI—Relative Strength Index on the Daily Chart is 59.0872 and is neutral as it shows no negative divergence or failure swings.

The Daily MACD has given a bullish signal as it has crossed over its signal line and now trades above its signal line.

The Markets have attempted to move out of the big falling trend line which forms a broad falling channel drawn from its lifetime highs of 6335 an joining the falling tops thereafter. Though the Markets have attempted to reverse the trend by move out of this channel, it still faces a resistance in form of 200-DMA 5715 and also in form a Double Top at  5740. The Markets will have to move past this two levels to successfully reverse the trend and in event of moving past these levels, we may see some more sustainable upside in the Markets. However, in the process of doing so, it is expected to act volatile, showing intermittent spurts and also trading in a range. The stock specific activities will be seen. Also, this being expiry  week, the sessions will also remain dominated with rollover activities. However, until this levels are breached, ultra cautious stock specific outlook is advised for today.

Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com

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

MARKET TREND FOR TODAY

The Markets on Friday, saw a huge spate of short covering as it ended the day with decent gains, forming a higher top and higher bottom on the Daily High Low Charts.

For today, expect the Markets to open on a mildly negative note and look for directions. Along with the intraday trajectory that it forms, the volumes too are expected to play critical part in deciding trend for today.

With the Markets expected to open on a mildly negative note, it is most likely to it trades in a range remaining intermittently volatile as it continues to remain in overall falling channel.

For today with negative opening expected, the levels of 5660 and 5675 are expected to act as resistance and the levels of 5580 and 5560 are expected to come in as supports.

The RSI—Relative Strength Index on the Daily Charts is 55.85 and is neutral as it shows no negative divergence or failure swings. The MACD continues to remain bearish as it trades below its signal line.

On the Weekly charts, the RSI is 51.3412 and it remains neutral without showing any negative divergence or failure swing. The Weekly MACD trades above its signal line.

As per the Chart Pattern analysis, the Markets still continues to trade below its falling channel / trend line drawn from its life time highs of 6335,  and joining the tops thereafter, both on the Daily as well as weekly charts.. Also, as per the F&O figures, the NIFTY futures have shed total open interest showing more of a short covering rather than fresh buying. Thus, as mentioned in previous session of our Daily Market Trend Guide, the Markets will need a trend reversal for a sustainable up move and this is expected to occur only after the Markets moves past and sustains above the levels of 5670-5720. The Markets may remain volatile and in a range until then. All and all, until this happens, it is advised to continue to remain stock specific and continue to vigilantly protect profits. A stock specific approach with cautious outlook is advised for today. 

Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com