MARKET TREND FOR TODAY
May 29, 2012
The Markets had a pleasant session today, especially the
later half as it saw the initial volatility but ended the day with decent
gains. The Markets opened on a quietly positive note and traded with capped
gains in the early session. The Markets did saw some intermittent volatility in
the first half of the session while it continued to maintain gains. However, in
the second half of the session, Markets saw itself getting stronger as the
Markets went on to give the day’s high of 49994.95. It closed near the high
point of the day at 4985.65, posting a decent gain of 65.25 points or 1.33% as
it continued with its up move after a day’s consolidation. It has formed a
slightly higher top and higher bottom on the Daily High Low Charts.
Today, we can expect the Markets to open initially on a flat
note and then continue with the up move. The technical as well as external global
factors support this. Technically speaking, the Markets are witnessing a successful pullback after the
lows of 18th May. The volatility shall remain and intraday
trajectory would continue to remain important.
For today, the levels of 5045 and 5070 which is the 200DMA
for the Markets are immediate resistance levels and the levels of 4950 and 4910
are immediate supports on the Charts.
The lead indicators continue to show the undercurrent as buoyant.
The RSI—Relative Strength Index on the Daily Chart is 46.9966 and it has
reached its highest value in last 14-days which is bullish. It does not show
any failure swing. The Daily MACD continues to remain bullish as it trades
above its signal line.
The NIFTY and Stock Futures have continued to add open
interest with the rise and this implies creation of fresh long positions in the
Markets.
All and all, technically speaking, the uptrend is likely to
continue though some consolidation during the day and intermittent bouts of
volatility cannot be ruled out. Going purely by technical factors, the Markets
should reach up to its 500-DMA levels of 5065-5070 and then consolidate. After
that we will if it this is a pullback or if this translates into reversal of
trend later. Stock specific activities would be seen. Any intermittent weakness
can be used to make selective purchases while vigilantly protecting profits at
higher levels. Overall, positive caution is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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