MARKET TREND FOR TODAY January 9, 2012
The Markets had an extended session on Saturday for hour and half and that too ended on a flat note with the Markets ending at 4746.90, posting a net loss of 7.20 points or 0.15%. In the process it formed a lower top but sharply higher bottom on the Daily High Low Charts. In the last entire week of six sessions, the Markets have ended the week with net gains of 122.60 points or 2.66%.
For this week too, the Markets are overall expected to remain in consolidation and may trade in a broad range that we have been discussing in the previous editions of Daily Market Trend Guide.
For today, expect the Markets to open on a mildly negative note again and look for directions. As it has been the case in last 3-4 sessions, today also the Markets are expected to consolidate and thus the intraday trajectory and especially the volumes shall play critical role in deciding the trend for today as well as for coming days. The Markets will have 4800 levels as a immediate resistance and this levels will have to be breached on the upside for any fresh sustainable up move. Until this happens the Markets are expected to remain in a broad consolidation range of 4550-4800 and may trade volatile.
All lead indicators still continue to remain in place. The RSI—Relative Strength Index on the Daily Chart is 48.1933 and is neutral as it shows no negative divergence or failure swings. The Daily MACD too continues to trade above its signal line and is therefore bullish. On the Weekly Charts, the RSI is 42.6166 and that too is neutral as it shows no negative divergence or failure swings. The Weekly MACD is bearish as it trades below its signal line. Also important to note that the 4785-4800 range is the resistance as mentioned on the Daily Charts but this level of 4786 is also a Weekly 200-DMA and thus continue to pose similar resistance.
All and all, the levels of 4785-4800 continue to pose immediate resistance and Markets will have to breach this before it has any sustainable up move. Until this happens, as it happened in the previous week, either the Markets will continue to consolidate in a range or see some mild profit taking. All this will keep the Markets either in a range, or also bit volatile. Under this case, selective purchases may be made and the profits should be very vigilantly protected at higher levels. Overall, cautious optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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