Daily Market Trend Guide -- Wednesday, June 15, 2011

MARKET TREND FOR TODAY

The Markets yesterday ended the day with modest gains as it ended it four day losing streak and in the process have formed a higher top and higher bottom on the Daily High Low Charts.

For today, expect the Markets to open on a flat to mildly positive note and look for directions. With the Markets expected to open on a flat to mildly positive note, the levels of 5550 and 5575 will continue to act as resistance and the levels of 5480 and 5460 are expected to act as supports.

The Markets have been trading in a capped and narrow range since last couple of sessions and today is expected to be no different as the Markets continues to await to the new triggers expected in form of RBI rate announcements in its mid term policy review and possible diesel price hike.

The lead indicators still continue to remain in place. The RSI—Relative Strength Index on the Daily Chart is 47.3121 and it shows no negative divergence or failure swing and is therefore neutral. The Daily MACD continues to trade above its signal line.

The Markets have been quietly adding Open Interest since last couple of sessions. However, due to lack of participation and volumes, any up move is not being sustained and at the same time no downside is comfortable either. The Markets are expected to react to the triggers mentioned earlier and until this happens, there are all chances that it continues to remain in range and remains volatile. All and all, it is advised to avoid shorts until critical levels are broken as much of the expected triggers are discounted at current price. Weakness will be seen only if more than discounted triggers come. Stock specific purchases may be made. Positively cautious outlook is advised for today.

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