MARKET TREND FOR TODAY
November 26, 2012
The Markets on Friday ended the day on a flat note after it
recovered from its day’s low continuing with its consolidation. The Markets opened
on a flat to mildly positive note and gave its intraday high of 5637.75 in the
early minutes of the trade. The Markets continued to trade in a very capped
range in the morning trade but
thereafter lost some ground as it continued to slip gradually. It not only
dipped into the red, but went on to give the intraday low of 5593.55. However,
in the last hour and half of trade, the Markets saw some recovery coming in
form of short covering. It recovered from its lows and finally ended the day at
5626.60, posing a net loss of 1.15 points or 0.02% forming a lower top and
lower bottom on the Daily High Low Charts.
Today, we enter into the expiry week of the current series
and the Market behaviour in coming days is all set to remain influenced with
the rollover activities. For today, expect the Markets to open on a moderately
positive to flat note and the behaviour of the Markets vis-à-vis the levels of
5630 would be critical. The Markets will have to remain above this levels to
avoid any weakness creeping in.
For today, the levels of 5630 and 5675 shall act as
immediate resistance levels and the levels of 5575 and 5530 are immediate
supports.
The RSI—Relative Strength Index on the Daily Charts is 47.6575
and it is neutral as it shows no negative divergence or failure swings. The
Daily MACD continues to remain bearish as it trades below its signal line. On the Weekly Charts too, the
RSI is neutral without showing any failure swings or bullish / bearish
divergence. The Weekly MACD trades above its signal line.
Going by the above, the Markets do not have any specific
directional triggers on the upside and thus, it is sure to remain influenced
with the rollover activities. The NIFTY futures have shed over 6 lakh shares or
4.8% in Open Interest on Friday. This signifies that the rise that we saw
towards the end of the session was more due to short covering and not due to
any fresh buying.
Having said this, the opening levels of the Markets and the behaviour
vis-à-vis the levels of 5630 would be important. It will have to comfortably
sustain above this levels in order to avoid any weakness.
All and all, the intraday trajectory the Markets form would
be important to decide the trend for today. Stock specific and rollover centric activity shall dominate
the Markets. Overall structure and pattern analysis of the Markets show to
directional triggers on the upside. While remaining highly stock specific and
cautious, aggressive positions are not advised.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
