Daily Market Trend Guide -- October 28, 2011 (Published in the Morning before the Markets opened)

MARKET TREND FOR TODAY

The Markets, though it remained flat and in sideward trajectory in the Mahurat session, (it remains so in most of such mahurat sessions), it has laid a foundation for a breakout as it moved past the levels of 5170.

Since the month of August, the Markets have remained in a broad trading range forming a rectangle of broad range of 5170 on the upper side and 4720 on the lower side. The Markets, after almost two and half months have attempted to breakout on the upper side as it moved past the levels of 5170 and sustained above that in the mahurat session.

For today, expect the Markets to open on a stronger note and look for directions. Today, the Markets are expected to open on a stronger note and are expected to continue with their up move. For today, the levels of 5240 and 5475 are expected to act as supports.

The Relative Strength Index (RSI) on the Daily Charts is 59.3024 and it has reached its highest value in last 14 days which is bullish. It does not show any negative divergence. The Daily MACD continues to remain bullish as it continues to trade above its signal line.

The important thing today would be to see the behaviour of the markets vis-à-vis the levels of 5241, which is the 100-DMA of the Markets. The Markets are expected to give a gap up opening but are likely to resist or consolidate a bit around these levels. Until the Markets moves past these levels, it is advised to protect long profits and maintain a stock specific  approach for today. However, this might be just a brief resistance as under current remains strong and trend intact. Positive outlook is advised for today.

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