Wednesday, April 20, 2011

Daily Market Trend Guide -- Wednesday, April 20, 2011

MARKET TREND FOR TODAY

The Markets yesterday moved quite volatile but in a range and finally ended with marginal gains and in the process have still continued to form sharply lower top and lower bottom on the Daily High Low Charts.
Taking cue from the positive global markets, the markets today are likely to see positive opening and trade in positive, at least in the initial trade.

With positive opening expected today, the levels of 5760 and 5785 are likely to act as resistance and the levels of 5729 and 5702 are likely to act as supports in form of 200 and 100 DMA at Close.
Yesterday, the Markets breached its 200-DMA levels but took support near its 100-
DMA and have managed to close marginally above both of that averages.

The RSI—Relative Strength Index on the Daily Charts is 52.1234 and shows no negative divergences or failure swings and is therefore neutral. The Daily MACD continues to remain bearish as it trades below its signal line.

After two days of sharp fall, yesterday’s marginal gains cannot be called a pullback and the Markets have formed a sharply lower top on Daily High Low Charts. Also, the two averages, i.e. 100–DMA and 200 DMA have continue to widen its negative divergence. Further Net Reduction is reported in over all NIFTY and Stock Futures. Thus, even with the positive opening, the intraday trajectory would be equally and critically important and given the chart pattern analysis read along with F&O data, the overall bias still remains on the correction continuing, though it may take a breather for a day. Any dip below the 5729-5702 shall make the Markets weaker. All and all, as advised in previous days, very selective stock specific approach with protection of profits at higher levels is advised. Outlook with high degree of Caution, especially towards Close 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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