MARKET TREND FOR TODAY
November 06, 2012
Markets had an extremely range bound session yesterday
wherein it managed to end the day with very nominal gains after a range bound
trade. The Markets opened on a quiet note and traded positive with very limited
and capped gains. It traded sideways in the first half of the session then
slipped into the red. It went on to give day’s low of 5679.50 in the afternoon
trade. Thereafter, in the last hour and half of trade, the Markets saw some
recovery from the day’s low. It crawled back into the positive territory and
finally ended the day at 5704.20, ending the day with very nominal gain of 6.50
points or 0.11% forming a parallel bar on the Daily High Low charts.
Today, we can fairly expect a flat to mildly negative start
to the session and the Markets are likely to trade directionless, at least in
the initial trade. The Markets are just not completely out of the woods and the
intraday trajectory that the Markets forms would be critical to decide the trend
for today.
The analysis would run somewhat same until the Markets
remains in such technical formation. The levels of5730-5740 shall continue to
remain resistance and the levels of 5630 would continue to act as supports.
The lead indicators point towards nothing and they show
neutral to downward bias. The RSI—Relative Strength Index on the Daily Chart is
56.6993 and it is neutral as it shows no bullish or bearish divergence and also
it does not show any failure swings. The Daily MACD continue to remain bearish
as it continues to trade below its signal line.
Both NIFTY and Stock futures have continued to add nominal
open interest. NIFTY has added a very nominal open interest of 0.63%. So have
the total stock futures.
Having said this, looking at the pattern analysis and the
F&O statistics, the Markets are likely to remain in a broad range of
5740-5630 with a downward bias. No sustainable up move shall occur until the
Markets moves past the levels of 5740-5830.
All and all, continuation of such directionless trade is
likely and selective out performance would be seen. With no breakout on either
side, the Markets will continue to remain in broad range while seeing intermittent
pullbacks. It is strongly advised to keep protecting profits on either side and
taking fresh position in extremely selective manger. Neutral outlook is advised
for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
