MARKET TREND FOR TODAY
Milan Vaishnav,
Consulting Technical Analyst, The Markets on Friday saw an relentless up move and closed near the high point of the day and in the process have formed a distinct higher top and higher bottom on the Daily High Low Charts.
For today, expect the Markets to open on a moderately positive note and look for directions. Though Markets are likely to open on a moderately positive to flat note, even with some positive opening, today’s trend would continue to remain critically dependent upon the intraday trajectory that the Markets form.
The Markets today are likely to resist to its 200-DMA levels of 5688 and the behavior of the Markets vis-à-vis these levels shall decide the trend for today as well as coming days. For today, the levels of 5688 shall act as resistance and the levels of 5625 and 5580 shall act as resistance.
The RSI—Relative Strength Index on the Daily Charts is 60.9695 and it does not show any negative divergence. It has reached its highest value in 14-days and this is BULLISH. The Daily MACD continue to trade above its signal line. On the Weekly Charts, the RSI is 50.9149 and its neutral as it does not show any negative divergence or failure swings. The Weekly MACD continues to remain in sell mode as it trades below its signal line.
Given the above technical reading, and the overall pattern of the Charts and given the fact that this is the expiry week and the Markets have risen over 300 points in last week, some consolidation / correction is imminent and in fact would be healthy for the Markets in the long run.
All and all, there are chances that post positive opening, we may see some consolidation happening at higher levels. It is advised to continue to protect profits at higher levels and to adopt ultra selective stock specific approach in taking fresh long positions. Continuation of cautious approach is advised for today.
Milan Vaishnav,
http://www.mymoneyplant.co.in/
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
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