MARKET TREND FOR TODAY
April 30, 2013
Yesterday was a day of positive consolidation for the
Markets as the Markets opened on a flat note and remained in a capped range
before spurting up and ending the day
with modest gains. The Markets opened on a moderately positive note in the
morning trade, slowly pared its opening gains and traded flat in sidewards
trajectory until afternoon trade. The Markets, for a moment, dipped into
negative territory as it gave its intraday low of 5868.80. However, it moved
back into positive and continued to trade in a capped range. However, in the
last hour and half of the trade, the Markets saw a sharp spurt as it went on to
give its intraday high of 5918.65. However trading around those levels for a while, the Markets ended the day at 5904.10,
posting a modest gain of 32.65 points or 0.56% while forming a slightly higher
top and higher bottom on the Daily High Low Charts.
Today, we can expect the Markets to open on a modestly
positive note and continue with its up move at least in the initial trade.
Thereafter, it would be important for the Markets to remain in positive rising
trajectory in order to sustain and capitalize on opening gains. It will have to
move past the congestion zone in order to achieve further sustainable up move.
For today, the levels of 5930 and 5965 shall continue to act
as immediate resistance on the Charts. The levels of 5890 and 5855 shall act as
immediate supports on the charts.
The lead indicators continue to remain neutral. The RSI—Relative Strength Index on the Daily Chart
is 63.2511 and it continues to remain neutral as it shows no bullish or bearish
divergences or any kind of failure swings. The Daily MACD is bullish as it
continues to trade above its signal line.
On the derivative front, the NIFTY May futures have added
over 3.46 lakh shares or 2.19% in open interest. This is little positive as it
shows that the yesterday’s sharp rise that we saw in the last hour saw some
fresh longs being added and it was not merely on account of short covering.
Overall, the Markets will have to move past the levels of
5925-5930 in order to have further sustainable up move. Until this happens, we
may still continue to see the Markets
trading in a capped range while being little volatile.
All and all, though the Markets will see further sustainable
up move only beyond the levels of 5925-5930, the bias, as of now remains on the
positive. However, aggressive longs should be added only after it moves past
these levels on a comprehensive basis. Until this, it is advised to continue
taking fresh positions on highly selective basis. Shorts, at this stage should
be avoided. Overall, continuation of cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
