MARKET TREND FOR TODAY March 1, 2012
The Markets yesterday traded perfectly as analysed as it opened higher but failed to sustain its opening gains and pared its gains entirely and ended the day with nominal gains. The Markets opened on positive note and gave its intraday high of 5458.80 in the early minutes of the trade. The Markets traded in a capped range thereafter for a brief time, but then transformed itself into falling trajectory and it not only pared all of its gains but went on to give its intraday low of 5352.25 and ended the day at 5385.20, posting a nominal gain of 9.70 points or 0.18%. In the process, it has formed a higher top and higher bottom on the Daily High Low Charts.
We draw kind attention to our yesterday’s edition of Daily Market Trend Guide wherein, we had mentioned that the levels of 5400-5420 range would be critical resistance to the Markets due to reasons mentioned therein. The Markets opened above those levels yesterday, but did not sustain its opening gains, dropped below and closed below these levels. Thus, this zone, i.e. the levels of 5400-5425 continues to remain immediate resistance for the Markets.
For today, expect the Markets to open on a negative note and look for directions. The intraday trajectory would be crucial but it is expected that the Markets may continue to drift lower. The GDP numbers announced yesterday failed to bring any cheer as it were its lowest in last three years. The levels of 5325 and 5270 are immediate supports on the Charts.
The RSI—Relative Strength Index on the Daily Chart is 54.9848 and it shows no negative divergence or failure swings and is neutral. The Daily MACD is bearish as it trades below its signal line.
All and all, overall pattern analysis and the lead indicators point towards continuation of the corrective trend in the Market. There are no triggers, either on the news flow side or on the technical side which can trigger any fresh up move. Even if it does, the levels of 5400-5425 shall continue to act as immediate resistance for the Markets and any sustainable up move shall occur only after the Markets moves past and sustains above these levels. However, intraday volatility cannot be ruled out. Until this happens, we may either continue to correct or consolidate. Stock specific activities may continued to be seen and selective purchases may be made. Overall, cautious outlook is continued to be advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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