MARKET TREND FOR TODAY
May 3, 2012
The Markets had a relatively dull session yesterday as it
consolidated on Close Charts by ended the day with negligible losses after
paring its opening gains. The Markets opened on a positive note and traded positive
in the initial trade as it formed its day’s high of 5279.60 in the morning
trade. It formed a negative trajectory thereafter as it slowly pared its gains
as the session progressed. However, it traded completely flat until the last
half hour of the trade. It dipped into the red in the end but recovered a bit
from there again to finally end the day at 5239.15, posting a very negligible
loss of 9 points or 0.17%. The volumes remained relatively lower on account of
consolidation and it formed a higher top and higher bottom on the Daily High
Low Charts.
Today’s analysis would remain more or less similar to that
of yesterday as the Markets lacks any major triggers, technicals remain
unchanged and the Markets continue to consolidate showing no directional bias
on any side. Therefore, one would have to rely on overall pattern analysis as
the Markets are likely to continue to consolidate. Expect the Markets to open
on a flat to moderately negative note and look for directions and the intraday
trajectory would continue to remain important.
The levels of 5270 and 5325 shall act as immediate
resistance levels and the levels of 5190 and 5150 shall act as supports on the
Charts.
RSI—Relative Strength Index on the Daily Chart is 48.6744
and it shows no negative divergence or failure swing and it is therefore,
neutral. The Daily MACD continues to trade below its signal line.
The NIFTY Futures have shed a very nominal 1.20 lakh shares
in Open Interest and the Stock Futures have added over 2.3 crore shares in Open
Interest, indicating no directional bias, especially on the downside. The NIFTY
PCR stands at 1.10 against 1.12.
Overall, with no directional bias seen, the Markets have
limited downside but overall is likely to remain range bound and volatile with
overall very capped movement at Close levels. It is continued to be advised to
avoid aggressive positions and also refrain from shorts as there is no
structural breach on the Charts. The NIFTY remains above the falling trend line
shown in the Charts and with very low levels of overall open positions, the
bias remains towards upside.
All and all, very selective and stock specific approach
should be continued and profits be very vigilantly protected on the upside. A
selective approach with positive bias is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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