Daily Market Trend Guide -- Tuesday, April 26, 2011

MARKET TREND FOR TODAY

The Markets yesterday spent the day in a very narrow range and ended the day with modest losses and in the process have formed a lower top and lower bottom on the Daily High Low charts.

Technically speaking, since the Markets have closed near the low point of the day, they are expected to open weak and trade negative, at least in the initial trade.

However, the markets are expected to open on a flat to mildly negative note again and look for directions.

For today, with the Markets expected to open flat to mildly negative, the levels of 5855 are expected to be critical levels to watch for and the behavior of the Markets vis-à-vis this levels shall decide the trend for the day. The levels of 5900 and 5925 shall act as resistance and the levels of 5830 and 5770 shall act as supports.

The RSI—Relative Strength Index on the Daily Chart is 59.1847 and is neutral as it shows no negative divergence or failure swings. The Daily MACD remains bearish as it trades below its signal line.

On the Candles, A Spinning Top has occurred. During a rally or near highs, such formation signals a potential weakness and the loss of momentum.

Apart from the above reading, there is a falling trend line drawn from the top of 6135 levels joining two tops and this line meets the value of 5855 today. If the Markets slips below this level, it may bring in further weakness.

All and all, there are chances of the Markets continuing to consolidate and remain direction less and weak with a bias towards downside. Also, for any sustainable up move, the Markets will have to move past the levels of 5944. It is thus advised to continue with the stock specific approach with protection of profit at higher levels. Outlook with high degree of caution is advised for today.

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

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