MARKET TREND FOR TODAY
The Markets had a flat session yesterday, but traded almost as precisely as expected and analyzed in our yesterday’s edition of Daily Market Trend Guide.
The Markets opened lower following weak global cues but the levels of 100-DMA continued to act as support as the Markets expectedly recovered from the opening lows as the session progressed. Though it came off its highs, it ended the day flat at 5258.45, posting a negligible 0.50 points or 0.01% and in the process have formed a almost similar top but lower bottom on the Daily High Low Charts.
Today is going to be no different and the Markets are expected to act in similar fashion as yesterday. The Markets are likely to see negative opening again but the levels of 5232 which is the 100-DMA and the levels of 5190-5200 (intraday) shall continue to act as supports. The behaviour of the Markets vis-à-vis these levels should be observed and the intraday trajectory that it forms shall be critically important today.
All lead Indices still continue to remain in place. The RSI—Relative Strength Index on the Daily Chart is 58.9238 and is neutral as it shows no negative divergence or failure swings. The Daily MACD too continues to remain bullish as it trades above its signal line.
NIFTY Futures have added a nominal 166150 shares in Open Interest. Apart from this, most of the Sectoral Indices recovered from their day’s low and most of the Stock were seen adding opening interest. This signifies both, discomfort at lower levels and thereby, some fresh buying too in selective stocks.
Today, again like yesterday, the Markets may see lower opening but there are again chances that Markets spends the session recovering from the opening lows. The Markets are trading comfortably above the important support levels and no structural breach has been seen on the Charts. In view of this, yesterday’s policy, i.e. avoiding shorts and remaining highly selective on fresh purchases may be followed. Overall, cautious but positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-9825016331
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