MARKET TREND FOR TODAY
The Markets yesterday opened lower on negative note but traded above its critical support levels throughout the session, but ended the day with losses forming a sharply higher top and higher bottom on the Daily High Low Charts.
Today, expect the Markets to open on a moderately positive note and look for directions. Yesterday, the Markets took support at its 50-DMA and this level today, which is 5004 is likely to continue to act as important support and it would be critically important to observe the behavior of the Markets vis-a-vis this level. It would be critically important for the Markets to trade above this level to avoid any further weakness.
All lead indicators continue to remain in place. The RSI--Relative Strength Index on the Daily Chart is 51.7251 and it is neutral as it shows no negative divergence or failure swings. The Daily MACD continues to trade above its signal line.
The Markets have shed 8.79% in Open Interest and this is certainly not a good sign. This signifies profit taking from higher levels and it is now extremely important that the Markets sees fresh long positions being built. All and all, it is extremely important to see the behavior of the Markets vis-a-vis the levels of 5004. It is continued to be advised to avoid shorts as overall bias remains on the upside and stability is expected. Stock specific and cautiously poisitve outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com
The Markets yesterday opened lower on negative note but traded above its critical support levels throughout the session, but ended the day with losses forming a sharply higher top and higher bottom on the Daily High Low Charts.
Today, expect the Markets to open on a moderately positive note and look for directions. Yesterday, the Markets took support at its 50-DMA and this level today, which is 5004 is likely to continue to act as important support and it would be critically important to observe the behavior of the Markets vis-a-vis this level. It would be critically important for the Markets to trade above this level to avoid any further weakness.
All lead indicators continue to remain in place. The RSI--Relative Strength Index on the Daily Chart is 51.7251 and it is neutral as it shows no negative divergence or failure swings. The Daily MACD continues to trade above its signal line.
The Markets have shed 8.79% in Open Interest and this is certainly not a good sign. This signifies profit taking from higher levels and it is now extremely important that the Markets sees fresh long positions being built. All and all, it is extremely important to see the behavior of the Markets vis-a-vis the levels of 5004. It is continued to be advised to avoid shorts as overall bias remains on the upside and stability is expected. Stock specific and cautiously poisitve 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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