MARKET TREND FOR TODAY
May 22, 2012
After having a positive opening and after maintaining gains
in a reluctant manner throughout the
session, the Markets gave up the gains in the last hour of the trade to end the
session with modest gains. The Markets opened positive and remained positive
throughout the session and also went on to give the day’s high of 4937.50.
However, post volatile session, the Markets came off from those highs after
spending some time in a capped range and finally ended the day at 4906.05,
posting a modest gain of 14.60 points or 0.30%. It formed a higher top and
sharply higher bottom on the Daily High Low Charts.
For today, expect the Markets to open on a buoyant note and
trade positive at least in the initial trade. To form a potential bottom and
continue with the pullback, it would be critically important for the Markets to
sustain the morning gains and capitalize on it and for this intraday trajectory
would be equally important.
The levels of 4940 and 4985 shall act as resistance today
and the levels of 4890 and 4855 shall act as immediate supports on the Charts.
All lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Chart is 33.8796 and is neutral as it shows no
negative divergence or failure swings. The Daily MACD c continues to trade
below its signal line.
Both NIFTY and Stock futures have continued to add in open
interest. The F&O figures very clearly suggests that fresh longs have been
added in the individual stock futures indicated by rise in Open Interest.
Further fresh shorts in NIFTY too are seen as it added Open Interest in the
last hour of the trade while coming off from its high.
The overall reading for the Markets would remain more or
less similar to that of yesterday, i.e. to remain selective with the individual
stocks while avoiding shorts.
All and all, volatility will continue in the Markets but the
Pattern Analysis and F&O data clearly suggests the trend to remain overall
intact despite volatility and has a upward bias. Selective stock purchases may
be made while strictly avoiding shorts and continuing to vigilantly protect
profits at higher levels. Overall, positive outlook is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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