Daily Market Trend Guide -- Tuesay, October 18, 2011 (Published in the morning before the Markets opened)

MARKET TREND FOR TODAY

The Markets yesterday expectedly consolidated as it pared all of its morning gains and spent rest of the session in sideward trading to finally end the day with nominal loss. However, it has still continued to form a higher top and higher bottom on the Daily High Low charts.

For today, expected the Markets to open on a lower note and consolidate at the lower levels on back of weakfish technicals and weak global cues.

The Markets yesterday gave its intraday high of 5160.20 and again it has resisted at the upper range of the broad rectangle trading range the Markets have formed.

Today, with the Markets expected to open on a lower note, the levels of 5075 and 5020 are expected to act as its supports.

The lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Chart is 56.7643 and is neutral as it does not show any negative divergence or failure swings.

The Daily MACD continues to trade above its signal line and is therefore bullish and is not in oversold or overbought range.

It is important to note that the Markets consolidated yesterday on expected lines. It also traded with its average to lower volumes which is a sign typical of consolidation.

Further to this, the NIFTY Futures have added 2.18% in Open Interest which shows that there have been no unwinding done from higher levels but some short have been created.

Today, there are bright chances that we may see a lower opening but the Markets attempts to recover after the weak opening as the session progresses. The levels of 5170 on the Charts continue to remain immediate resistance and the Markets are expected to continue to consolidate on lower volumes with some amount of volatility ingrained in it. It is advised to continue to avoid shorts as the Markets are just consolidating and overall trend remains intact with upward bias.

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