Tuesday, May 31, 2011

Daily Market Trend Guide -- Tuesday, May 31, 2011

MARKET TREND FOR TODAY


The Markets yesterday opened on a positive note on expected lines but also consolidated as expected and finally ended the day of typical consolidation with low volumes with negligible loss but in the process have continued to give a higher top and higher bottom on the Daily High Low Charts.

For today, the Markets are expected to open on a positive note and may trade in the positive at least in the intraday trade.

With the Markets expected to open on a positive note, two factors would decide if the Markets will continue with its up move or would continue to consolidate. That would be the intraday trajectory that the Markets would form post opening and the volumes, that have remained a concern over couple of day, especially yesterday when they were much below its average.

All lead indicators continue to remain in place. The RSI — Relative Strength on the Daily Chart is 45.5075 and is neutral as it shows no negative divergence or failure swings.

Daily MACD on the Daily Charts has given a fresh buy signal after almost 28 sessions as it has reported a positive crossover and it now trade above its signal line.

Apart from the above reading, further OI in stock and Nifty futures have been added with the  widening of discount. This also suggest some addition of short positions but widening of discount without much fall also suggest discomfort at lower levels.

All and all, there is no consensus on the down side but at the same time, Markets lacks conviction to move up, though the bias continues to remain on the upside given the technicals and F&O Data. It is advised to continue to maintain stock specific approach making selective purchases strictly avoiding shorts. Positive optimism 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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