Friday, April 29, 2011

Daily Market Trend Guide -- Friday, April 29, 2011

MARKET TREND FOR TODAY


The Markets yesterday failed to capitalize on positive global  cues as it opened positive but soon transformed itself into falling negative trajectory to end yet another session with losses and in the process have formed a sharply lower top and lower bottom on the Daily High Low Charts.

Today, again, expect a flat to negative opening in the Markets following slightly weak technicals and muted global markets. Today, with the Markets expected to open on a slightly negative note, the levels of 5825 and 5860 shall act as resistance and the levels of 5750 an 5735 shall act as supports.

It is important to note at this point that linking negative opening to the muted global cues would be improper as the global markets have clearly outperformed the domestic markets this week.

The RSI—Relative Strength Index on the Daily Chart is 51.4963 and is again neutral as it shows no negative divergence or failure swings. The Daily MACD continues to remain bearish as it trades below its signal line. On the candles, no negative formation is still seen.

The markets have clearly underperformed its global peers and so far as technical indicators goes, they are more neutral to bearish than heavily bearish. The another important thing to note at this point is that the Markets have important support at Close at 5748 which is the 200-DMA of the Markets.

So, it is very much likely that the Markets may see a limited downside from these levels and might trade in a range with the levels of 5900-5940 acting as immediate top. The Markets are likely to forma broad trading range of 5740-5940 levels and remain in this  broad trading range in absence of any triggers on either side. This will result in likelihood of range bound sessions. Stock specific approach with cautiously positive outlook is advised for today.
  

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

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