MARKET TREND FOR TODAY May 2, 2012
The Markets saw a volatile session on Monday, saw some minor
profit taking but finally ended the day with positive bias as it closed with modest
gains. The Markets opened positive and remained positive throughout the
session. The Markets opened on a positive note and went on to give intraday
high of 5262.15 in the late morning trade. The Markets came off its highs in
the afternoon trade as it saw some minor profit taking. The Markets recovered
again in the later half to finally end the day at 5248.15 posting a net gain of
39.15 points or 0.75%. In the process, it has formed a higher top and higher
bottom on the Daily High Low Charts.
For today, expect the Markets to open on a positive note and
look for directions. The lead indicators, the F&O data and the pattern
analysis all lead towards greater possibility of positivity sustaining in the
Markets and the intraday trajectory would continue to remain important.
The levels of 5310 and 5335 shall act as immediate
resistance on the Charts and the levels of 5210 and 5180 shall act as supports.
The RSI—Relative Strength Index on the Daily Chart is
49.5353 and it is neutral as it shows no negative divergence or failure swings.
The Daily MACD still continues to trade below its signal line.
The Markets have attempted to move up the falling trend line,
as indicated in Charts and this may see some momentum coming in. It would be
critical to see the Markets sustaining above the levels of 5200 in order to
avoid any short term weakness. The positive crossovers of the DMAs have become
distinct.
Both NIFTY and Stock futures have continued to add open
interest. However, the Markets remains in a broad range and it is likely to
remain until it moves past the levels of 5300 and 5400-5420 levels. Until this
happens will have to live with range bound movements, minor profit taking bouts
and overall volatile trade.
All and all, range bound trade to continue. With no
structural breach on the charts of any kind, short should be avoided. At the
same time, profits on existing
positions, if any, should be protected vigilantly as the Markets will remain
direction-wary. Aggressive positions may be avoided but stock specific action would
be seen and selective buying may be done. Overall, positive caution is advised
for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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