Gemstone Equity Research & Advisory Services

Friday, June 10, 2011

Daily Market Trend Guide -- Friday, June 10, 2011

MARKET TREND FOR TODAY

The Markets in the yesterday’s session remained quite direction less as it moved in a narrow range and ended the day with negligible losses on low volumes and in the process have formed a marginally lower top and lower bottom on the Daily High Low Charts.

We draw attention to our edition of Daily Markets Trend Guide dated Monday wherein we had categorically expected this week to be a range bound and directionless week and this is what it has precisely turned out to be as of now in absence of any major triggers.

For today, expect the Markets to open on a flat note and again continue to heavily depend upon volumes and intraday trajectory to find directions with the levels of 5565 and 5605 continuing to act as resistances and the levels of 5505 and 5480 acting as supports.

The lead indicators continue to remain neutral. The RSI—Relative Strength Index on the Daily Charts is 48.7587 and is neutral as it shows no negative divergence or failure swings. The Daily MACD continues to remain bullish as it trades above its signal line.

Having said that the Markets are lacking any triggers on either side, it is likely to react today to the IIP numbers that will be announced later today. It is also likely to find a major trigger in the interest rate announcements later coming week. The trend for today will remain highly influenced to the reaction to the IIP numbers which are expected to be moderate. We continue to advice to selectively pick up stocks as the activity is likely to remain stock specific. The sustainable up move in the Markets shall occur only after Markets closing above its 100DMA currently at 5567 and it move further above 5600. Until this happens, its going to remain in a range and bit volatile. While remaining selective in the markets, cautiously optimism is advised.

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

Thursday, June 9, 2011

Daily Market Trend Guide -- Thursday, June 09, 2011

MARKET TREND FOR TODAY

The Markets spent listless session yesterday trading on very low volumes and ended the day with modest losses and in the process formed a lower top and higher bottom on the Daily High Low Charts.

Today, again, it is going to be no different. The Markets will continue to show resilience and will continue to trade / consolidate in a very capped range with the levels mentioned hereinafter continuing to act as resistance.

For today, expect the Markets to open on a flat to mildly negative note and continue to look for directions depending heavily on the intraday trajectory that it forms and the volumes / participation which has constantly remained a concern in past couple of sessions. For today, the levels of 5570 and 5605 shall continue to act as resistance and the levels of 5515 and 5480 shall continue to act as supports.

The RSI—Relative Strength Index on the Daily Charts is 49.2782 and it shows no negative divergence or failure swings and is therefore neutral. The Daily MACD is bullish as it continues to trade above its signal line.

The F&O data suggests the FIIs adding Open Interest in NIFTY and Stock futures signifying creation of shorts and remaining nominal net buyers in Cash segment.

From this, we can fairly conclude that in absence of major triggers the levels of 5570-5605 shall continue to act as resistance and at the same time, low volumes signifies discomfort even at lower levels. Under such circumstances, the Markets usually remain volatile and in capped range. They are likely to break on the upper side only after it breaches the levels of 5600 significantly, and until this happens likely to remain range bound. Again, highly stock specific approach with cautious optimism is advised for today.