Daily Market Trend Guide -- Tuesday, July 26, 2011

MARKET TREND FOR TODAY

After a lackluster trade for more than half of the session, the Markets suddenly saw a spurt, taking it higher and ended the day with smart gains, an in the process forming a higher top and higher bottom on the Daily High Low Charts.

The Markets are in the process of attempting a trend reversal and today is going to face a very critical test today.

Today, expect the Markets to open on a moderately positive note and look for direction. The intraday trajectory that it forms  and the volumes would play a critically important role in deciding the sustainability of the process of reversal attempt.

Today, with the Markets expected to open on a flat to mildly positive note, the levels of 5700 and 5720 are expected to act as resistance and the levels of 5650 and 5610 are expected to act as supports.

The RSI—Relative Strength Index on the Daily Chart is 59.0872 and is neutral as it shows no negative divergence or failure swings.

The Daily MACD has given a bullish signal as it has crossed over its signal line and now trades above its signal line.

The Markets have attempted to move out of the big falling trend line which forms a broad falling channel drawn from its lifetime highs of 6335 an joining the falling tops thereafter. Though the Markets have attempted to reverse the trend by move out of this channel, it still faces a resistance in form of 200-DMA 5715 and also in form a Double Top at  5740. The Markets will have to move past this two levels to successfully reverse the trend and in event of moving past these levels, we may see some more sustainable upside in the Markets. However, in the process of doing so, it is expected to act volatile, showing intermittent spurts and also trading in a range. The stock specific activities will be seen. Also, this being expiry  week, the sessions will also remain dominated with rollover activities. However, until this levels are breached, ultra cautious stock specific outlook is advised for today.

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