Daily Market Trend Guide -- Wednesday, September 28, 2011 (Published in the morning before the Markets opened)

MARKET TREND FOR TODAY

The Markets yesterday continued with its pullback and ended the day with robust gain and in the process formed a sharply higher top and higher bottom on the Daily high Low Charts.

The Markets, at yesterday’s close, have move up over –Points NIFTY from the intraday low of Monday.

For today, after this pullback from the support levels by almost over 200-odd points, the Markets are poised for a brief consolidation.

Following this, expect the Markets for a quiet opening today and look for directions. After opening on a quiet and flat note, the Markets shall depend upon intraday trajectory that it shall form today as this would be important to decide the trend for today, as the Markets continues to trade in a very broad trading range of 5170-4970.

The RSI—Relative Strength Index on the Daily Chart is  46.4165 and is neutral as it shows no negative divergence or a failure swing. The Daily MACD is bearish as it trades below its signal line.

On the Candles,  A Rising Window  occurred. This formation occurs when the top of the previous shadow is below the bottom of the current shadow. This signifies continuation of a Bullish Trend.

Having said this, it can fairly be concluded that the Markets may consolidate again for a brief while but overall trend remains intact. However, we enter today into penultimate day of expiry of the current derivative Series and thus, we can also expect the session to remain fairly dominated with rollover centric activity. Such rollover centric activity may also make the Markets see some pressure and may also see some amount of volatility ingrained in it.

All and all, it is still advised to refrain from shorts as technical indicators suggests the trend being intact and the Markets trading in a broad range despite not ruling out some amount of  consolidation. It is advised to remain highly stock specific in action while vigilantly continuing to protect profits at higher levels. Positive cautions is advised.

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