Friday, June 3, 2011

Daily Market Trend Guide -- Friday, June 03, 2011

MARKET TREND FOR TODAY


Markets continued to correct a bit and consolidate yesterday on average volumes to close with modest losses after coming off from its opening lows on expected lines and in the process have formed a lower top and lower bottom on the Daily High Low Charts.

For today, tough we may see the respite from the weakness that we saw, we also expect the overall consolidation to continue with an overall up ward bias and this can also come on lower volumes.

For today, expect the Markets to open on a flat to mildly negative note and look for directions. The volumes and in the intraday trajectory that it forms during the day would be critical to enable the markets to further its gains. For today, the levels of 5590 and 5635 shall continue to act as resistance and the levels of 5530 and 5505 shall act as supports.

Again today, as in the last couple of sessions, all lead indicators continue to remain in place. The RSI—Relative Strength Index is 51.2303 and is neutral as it shows no negative divergence or failure swings. The Daily MACD is bullish as it continues to trade above its signal line.

Also, as predicted in our yesterday’s edition of Daily Market Trend Guide, the Markets spent the session in trying to recover after opening on the lowest note and this very clearly signifies positive consolidation. The FIIs too have remained net buyers in F&O Markets and both NIFY and Stock Futures have continued to add open interest Also, the NIFTY futures going into premium from discount shows discomfort at lower levels. All and all, stock specific activity would be seen with the Markets continuing to consolidate / correct on small note. Volatility and range bound movement will stay. It is advised to adopt stock specific selective approach while 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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