Monday, June 6, 2011

Daily Market Trend Guide -- Monday, June 06, 2011

MARKET TREND FOR TODAY


The Markets on Friday had an strong and buoyant opening which eventually fizzled out as the Markets ended the day with modest losses and in the process have formed a higher top but lower bottom on the Daily High Low Charts.

Having a close look at the Daily and Weekly charts shows that we can expect a listless and range bound week with no major trigger on the either side.

For today, expect the Markets to open on a moderately negative note. Since the Markets expected to open on a moderately negative note, it is again, as in previous couple of sessions, all likely to remain dependent on the volumes it trades and the intraday trajectory it forms for the trend of the day. For today, the levels of 5577 and 5605 are likely to act as resistance and the levels of 5500 and 5480 are likely to act as support.

The RSI—Relative Strength Index on the Daily Chart is 48.5870 and it shows no negative divergence or failure swings. The Daily MACD continues to trade positive, above its signal line.
On the Weekly Charts, the RSI is 47.7443 and it also neutral as it does not show any negative divergence or failure swings. The Weekly MACD, however, continues to trade below its signal line.

The NIFTY has ended the week on a moderately positive note. Also, as explained there are no triggers on the either side as the lead indicators are neutral, but certainly has bias towards upside as the Weekly MACD is improving and the Daily MACD is  bullish.  The Markets are expected to remain in a broad range of 5480-5625 and during this range, it may display volatile movement on lower volumes. It is advised to avoid short positions and the only stock specific activity is advised. Dips may be used to make selective purchases. Cautious 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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