Tuesday, April 19, 2011

Daily Market Trend Guide -- Tuesday, April 19, 2011

MARKET TREND FOR TODAY


The Markets resisted the mentioned resistance levels of 5900 as it could not sustain at higher levels after buoyant opening and dipped to its  lows to end the day with losses and in the process have formed a lower top and sharply lower bottom on the Daily High Low Charts.

Today, again, technically speaking, the Markets are expected to open on a negative note as they have closed near the low point of the day and trade negative at least in the initial trade.

For today, thus, expect the Markets to open negative and the levels of 5550 and 5595 shall act as resistance on the upper side whereas the levels of 5726, 5704 are expected to act as support on Close levels in form of 200-DMA and 100-DMA respectively. Below this the support exists at 5610.

The RSI—Relative Strength Index on Daily Chart is 51.3948 and has reached its lowest value in last 14-days which is BEARISH. It continues to set new 14-period low while nifty has not and this again is BEARISH DIVERGENCE.

The Daily MACD has given a sell signal as it has just dipped below its signal line.

Today’s session and its trend in coming days is very critically depend upon the Markets opening and trading above 5704-5725 levels. The Markets WILL have to trade and sustain above this levels if it is to avoid any further weakness. With total NIFTY open interest and Stock futures reporting net shedding, this will be a difficult task. However, a bout of short covering as seen in the morning  yesterday also cannot be ruled out.

All and all, market behavior vis-à-vis the mentioned levels critically important. Though some short covering may be seen, bias still remains on downside. With the Markets opening lower, it will see further weakness if dips below 5705 levels. Cautious outlook is advised to be continued today.


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

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

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