MARKET TREND FOR TODAY
December 28, 2012
The Markets had a session typically dominated with heavy
rollover centric activities as it opened flat, spent most of the session in a
very narrow range and then lost some ground towards the end to end the day with
modest losses. The Markets opened on a mildly positive note and then traded
positive in the first half of the session as it gave its intraday high of
5930.80 in the very early moments of the trade. The Markets then gradually drifted into the negative territory
but still continued to trade with very capped losses. However, it was in the
last hour of the trade that the Markets saw some bout of weakness as it drifted lower to give the day’s low of
5864.70. The Markets hovered around those levels to finally end the day at
5870.10, posting a net modest loss of 35.50 points or 0.60% as it still formed
a slightly higher top and higher bottom on the Daily High Low Charts.
Precisely on expected lines, the levels of 5930-5940 have
acted as crucial resistance again as the Markets did not move past them
yesterday. Today, expect the Markets to open on a flat to mildly positive note
again and look for directions. The intraday trajectory continues to remain
critical as the Markets continue to remain in the broad trading range that it
has been trading in.
Today, the levels of 5940 shall continue to remain the key
resistance levels for today. The supports come in at 5820 and 5775 levels.
As we have been mentioning in the previous editions of the
Daily Market Trend Guide, the lead indicators continue to remain neutral to
mildly bearish. The RSI—Relative Strength Index on the Daily Chart is 54.9366
and it is neutral as it shows no bullish or
bearish divergence or any failure swings. The Daily MACD is bearish as
it continues to trade below its signal line.
On the derivative front, the statistics are mildly bullish. The
NIFTY rollover has been little above average and better than the previous month
and the NIFTY PCR has begun the new series with 0.88, which is much better.
Having said this, the pattern analysis of the Markets clearly continue to show the
Markets trading in a broad range and fresh sustainable upward breakout shall
occur only after the Markets moves past the levels of 5940-5950. Until this
happens, we will continue to see the Markets trading in the broad trading range
of 5820-5940 with some degree of volatility ingrained in it.
All and all, keeping this in mind, it is advised to continue
to approach the Markets in a cautious and with a stock specific approach and should also continue to protect
profits vigilantly. While avoiding shorts, very selective purchases may be
made. Overall, mildly positive, but cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
