MARKET TREND FOR TODAY February 27, 2012
The corrective trend in the Markets continued on Friday on expected lines as Markets drifted after opening positive and ended the day with losses. The Markets opened on a positive note and gave its intraday high of 5521.40 in the early seconds of the trade. Thereafter, the Markets turned negative and transformed themselves into falling trajectory for the rest of the session. It continued to drift and gave its intraday low of 5405.90 coming off over 120-odd points from its day’s high. It finally ended the day at 5429.30, posting a net loss of 54 points or 0.98%. With this, the Markets have ended the week with net loss of 135 points or 2.43% and has formed a lower top and lower bottom on the Daily High Low Charts.
For today, technical charts point towards the correction continuing in the Markets. Today, expect the Markets to open on a moderately negative note and look for directions. All lead indicators too point towards continuing weakness and the intraday trajectory too would play a critical role in deciding the trend for the Markets today.
Today, the levels of 5460 and 5490 are likely to act as resistance and the levels of 5390 and 5325 are likely to act as supports.
The RSI—Relative Strength Index on the Daily Charts is 60.0321 and it has reached its lowest value in last 14-days which is Bearish. Also, RSI has set a new 14-day low where as NIFTY has not yet and this is BEARISH DIVERGENCE. On the Candles too, formations point towards continuing weakness. The Daily MACD has reported a negative crossover one day ago and thus trades below its signal line.
On the Weekly Charts, RSI remains neutral and Weekly MACD trades above its signal line.
Having said this, it can be fairly concluded that all indicators point towards continuation of correction. We may see some intraday sharp recoveries but correction in the Markets is likely to continue. Intraday trajectory would thus be important. Thus, it is advised to refrain from taking any fresh long positions on aggressive manner and purchases, if any, should be made on very selective basis while vigilantly protecting profits. Overall, cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.