Wednesday, June 8, 2011

Daily Market Trend Guide -- Wednesday, June 08, 2011

MARKET TREND FOR TODAY


The markets showed resilience against the global weakness as it rose from the opening lows to end the day with moderate gains, though on low volumes and in the process have formed a higher top and higher bottom on the Daily High Low Charts.

In our Monday’s edition of Daily Market Trend Guide, we had categorically mentioned that this week would remain a consolidation week with the Markets continuing to remain in a broad range in absence of any triggers and this is precisely happening.

Today also, expect the Markets to open on a moderately negative note. Again, it is likely to open low and then spend the day recovering and once again would largely depend upon the volumes and the intraday trajectory that it forms would be critically important.

For today, the levels of 5575  and 5605 will continue to remain a resistance today and the levels of 5520 and 5480 shall again continue to act as supports.

The RSI—Relative Strength Index on the Daily Charts is 51.8705 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.

The F&O data shows continuation of addition of Open Interest in both NIFTY and Stock futures. With the increase in premiums, its evident that there is clear discomfort at lower levels.

All and all, the markets are likely to continue to show resilience to global weakness. In absence of any negative triggers, the Markets are likely to remain in broad range of 5490-5605. It is also likely that post negative opening, it may again spend the session in improving from lower levels. Stock specific purchases may be made at lower levels strictly avoiding shorts. Cautious outlook 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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