Daily Market Trend Guide -- Friday, June 10, 2011

MARKET TREND FOR TODAY

The Markets in the yesterday’s session remained quite direction less as it moved in a narrow range and ended the day with negligible losses on low volumes and in the process have formed a marginally lower top and lower bottom on the Daily High Low Charts.

We draw attention to our edition of Daily Markets Trend Guide dated Monday wherein we had categorically expected this week to be a range bound and directionless week and this is what it has precisely turned out to be as of now in absence of any major triggers.

For today, expect the Markets to open on a flat note and again continue to heavily depend upon volumes and intraday trajectory to find directions with the levels of 5565 and 5605 continuing to act as resistances and the levels of 5505 and 5480 acting as supports.

The lead indicators continue to remain neutral. The RSI—Relative Strength Index on the Daily Charts is 48.7587 and is neutral as it shows no negative divergence or failure swings. The Daily MACD continues to remain bullish as it trades above its signal line.

Having said that the Markets are lacking any triggers on either side, it is likely to react today to the IIP numbers that will be announced later today. It is also likely to find a major trigger in the interest rate announcements later coming week. The trend for today will remain highly influenced to the reaction to the IIP numbers which are expected to be moderate. We continue to advice to selectively pick up stocks as the activity is likely to remain stock specific. The sustainable up move in the Markets shall occur only after Markets closing above its 100DMA currently at 5567 and it move further above 5600. Until this happens, its going to remain in a range and bit volatile. While remaining selective in the markets, cautiously optimism is advised.

Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com