Daily Market Trend Guide -- Thursday, April 28, 2011

MARKET TREND FOR TODAY

The Markets expectedly remained tentative and in downward trajectory after resisting at 5900 levels and ended the day with modest losses and in the process have formed similar top and a higher bottom on the Daily High Low charts.

Today, since the Markets ended at the low point of the day yesterday, it should open on a negative note and trade negative at least in the initial session. However, given the positive global markets, we may see flat to positive opening in the Markets today.

Thus, with the Markets expected to open on a flat to positive note, the trend would again depend upon the intraday trajectory that it will form. Also, today being the expiry day of the current series, the session shall remain dominated with rollover activities. For today, the levels of 5880 and 5925 shall act as resistance and the levels of 5805 and 5775 shall act as supports.

All lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Chart is 55.5756 and it continues to remain neutral as it shows no negative divergence or failure swings. The MACD however, continues to remain bearish as it trades below its signal line.

The Markets may open on positive note and trade positive in the initial trade following positive global cues but, as often mentioned in our previous editions, sustainable up move shall occur only above 5900-5950 levels. Until then all we will see would be intermittent short covering or target based buying until 5900-5950 levels.

All and all, it is continued to advised to protect profits in all long position at higher levels and fresh positions may be initiated only very selective note. In order to avoid any weakness, the Markets will have to remain in positive trajectory to capitalize on positive opening. Positive  but cautious outlook is advised for today. 

Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331

milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com