MARKET TREND FOR TODAY
April 18, 2012
The Markets rejoiced a 50-bps cut in the
REPO Rate, first time since three years as it ended the day with decent gains
after greatly volatile session and with the NIFTY moving over 150-points
intraday as the session remained greatly volatile. The Markets opened flat to
moderately negative and traded in capped range until the RBI made announcements
following which it saw a sharp increase of 60-odd points. It however slowly
pared those gains again to trade flat. It saw recovery again and went on to
give its intraday high of 5298.30 and ended the day at 5289.70, posting a
decent gain of 63.50 points or 1.22%. In the process, it has formed a sharply
higher top and higher bottom on the Daily High Low Charts.
Since the Markets have ended the day near
the high point of the day, technically speaking, they are expected to open
higher and continue with their up move. Today, we can fairly expect the Markets
to open on a positive note and look directions. The intraday trajectory would
continue to remain important.
For today, the levels of 5315, which is the
pattern resistance as denoted by blue falling trend line and the levels of 5338
which is the 50-DMA for the Markets and the levels of 5400 shall act as
immediate resistance on the Charts and the levels of 5250 and 5210 shall act as
immediate supports.
The RSI—Relative Strength Index on the
Daily Chart is 51.0511 and is neutral as it shows no negative divergence or failure
swings. The Daily MACD still continues to trade below its signal line.
All F&O data point towards continuation of upward move. The NIFTY
futures have added over 10 lakh shares and the Stock Futures have added over 6
Crore shares in Open Interest indicating creation of fresh long positions.
All and all, the underlying trend remains
intact. However, the way there had been no negative breach on the Charts couple
of days back, similarly, there is no positive breakout as yet. Following this,
the Markets faces multiple resistance until it moves past 5400-5420 levels and
until this happens , all profits should be protected vigilantly. Stock specific
purchases may be made as selective picking would continue but at the same time,
vigilant profit booking should also not be ignores until the Markets moves past
the mentioned levels. Overall, positive outlook is advised for today as
underlying trend remains intact.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.