Daily Market Trend Guide -- Tuesday, November 29, 2011 (Published in the Morning before the Markets opened)

MARKET TREND FOR TODAY                                          November 29, 2011

The Markets yesterday a saw a gap up opening on back of OVERSOLD technicals and very positive global cues as it extended its opening gains 2.5 fold and ended the day on a robust note at 4851.30, posting a strong gain of 141.25 points or 3% and thus formed a sharply higher top and higher bottom on the Daily High Low Charts.

The biggest concern yesterday has been the volumes that were much below average and they will continue to remain a concern today.

Technically speaking, since the Markets have ended the day yesterday near the high point of the day, it should continue with its up move today, at least in the initial session, but as said above, lack of volumes will remain a concern.

For today, expect the Markets to open on a flat and look for directions. The Markets have hold good the support of 4720 and have also managed to move past the levels of 4780-4820 and have thus entered successfully into the broad trading range of 4780-4820 on the lower side and 5270 on the upper side.

Today, with flat opening expected, the intraday trajectory would remain crucial and in any kind of correction seen, the Markets will have to remain above the levels of 4820 in order to avoid slipping into weakness again. For today, the levels of 4880 and 4935 shall act as resistance and the levels of 4820 and 4780 are likely to act as supports.

The RSI—Relative Strength Index on the Daily Chart is 41.82 and is neutral as it shows no negative divergence or failure swings. The Daily MACD continues to trade below its signal line.

With all lead indicators in place and with all stocks and Nifty showing overall minor addition in total Open Interest, the technicals point towards continuation of up move, however, some consolidation and sideward movements cannot be ruled out. There are also chances that some mild profit taking may be seen, but at the same time, the up move is likely to continue.

All and all, stock specific activities shall be seen. Selective purchases may be seen while vigilantly protecting profits at higher levels. Overall, positive outlook is advised for the day.

Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
http://milan-vaishnav.blogspot.com
+91=98250-16331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com