Daily Market Trend Guide -- Wednesday, November 09, 2011 (Published in the morning before the Markets opened)

MARKET TREND FOR TODAY

The Markets expectedly remained in the consolidation stage as it opened moderately positive, pared its gains, took support and recovered from its lows again to end the day with moderate gains and in the process have formed a lower top and lower bottom on the Daily High Low charts.

The Markets yesterday recovered from its lows and ended the day near the high point of the day, and thus technically speaking, they are expected to continue with its up move today, at least in the initial trade.

The above reading is further supported by global cues today and thus, we can fairly expect the Markets to open on a positive note today and look for directions while trading positive at least in the initial trade today. With the Markets expected to open positive, the levels of 5330 and 5355 shall act as resistance and the levels of 5350 and 5320 are likely to act as supports.

All lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Charts is 60.5594 and is neutral as it shows no negative divergence or failure swings. The Daily MACD remains bullish as it continues to trade above its signal line.

On the Candles, A lower long shadow has occurred. This is typically a bullish signal when it occurs near a support level, which appears to be the case with NIFTY.

Apart from this, we have seen discomfort at lower levels in the Markets as it recovered from its lows yesterday, though on low volumes and in the end it also added Open Interest. This signifies that apart from short covering, some fresh longs have also been seen building up. Having said this, it also remains to be seen that the Markets moves past the falling trend line drawn from its highs of 6338 levels and poses resistance around 5330-5345 levels. Until this happens, we will continue to see range bounds movements which will be volatile and on low volumes. Further we have there-working day truncated week so this may keep the markets in range, while  undercurrent remains bullish. With intraday trajectory crucial, while avoiding shorts, cautious but positive 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 -- Tuesday, November 08, 2011 (Published in the Morning before the Markets opened)

MARKET TREND FOR TODAY

The Markets expectedly came off its morning highs on Friday as the Markets chose to remain safe ahead a extended weekend as it ended the day with nominal gains and in the process still continued to form a higher top and higher bottom on the Daily High Low Charts.

We had categorically mentioned in our Friday’s edition that the intraday trajectory would be critically important if the Markets wants to sustain and capitalize on its strong opening and expectedly Markets came off its highs forming a negative falling trajectory in the second half of the session.

This analysis will hold good for today also. The Markets are likely to open on a stronger note following positive global cues and gains in the US Markets but today also, the intraday trajectory would be critically important in order to capitalize on stronger opening. The levels of 5325 and 5352 shall act as resistance whereas the levels of 5250 and 5235 shall continue to act as supports.

All lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Charts is 60.2743 and it continues to remain neutral without showing any failure swings or negative divergence. The Daily MACD continues to remain bullish as it trades above its signal line.

On the Weekly Charts, the RSI is  51.0531 and is neutral without showing any negative divergence or failure swings. The Weekly MACD is bullish since one week as it now trades above its signal line.

Having said this, the Markets shall continue to see a pattern resistance at 5420 levels on Weekly Charts and at 5325 and 5350 in form of a falling trend line drawn from the life time high levels of 6338. Also, a local important factor that we have a short and truncated week comprising of just three working days. All this factors are likely to keep the Markets in consolidating zone. This is likely to keep volatility and range bound movement in the Markets, even though the overall trend remains intact. In such circumstances, it would be important to vigilantly keep protecting profits at higher levels, while avoiding shorts. Overall, positively cautious outlook is advised for today.

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