MARKET TREND FOR TODAY June 27, 2012
The Markets saw a directionless, volatile and a narrow range
bound session yesterday as it continued to consolidate as it ended the day with
nominal gains after moving all over the places during the day. The Markets
opened on a mildly negative note traded in the positive side with capped gains
after remaining briefly into the red. The Markets gave its intraday high of
5134.35 in the late afternoon trade. It soon gave off its gains, dipped into
the red and gave its intraday low of 5095.50. It however, recovered again in
the last half an hour of trade and finally ended the day at 5120.80, posting a
nominal gain of 6.15 points or 0.12%. It has formed a sharply lower top and
mildly lower bottom on the Daily High Low Charts. The volumes remained
moderately below average.
Today’s analysis remains more or less similar to that of
yesterday. We enter the penultimate day of expiry of the current June series
and the session is likely to remain dominated with rollover centric activities.
Positive consolidation would continue as the Markets are expected to open on a
mildly positive note and continue with the yesterday’s up move that was seen
towards the end of the session. Since the Markets continue to remain a broad range and under consolidation, the
intraday trajectory would continue to remain important to dominate the trend for
the day.
The levels of 5155 and 5195 shall act as resistance and the
levels of 5074 and 5050 shall act as immediate support on the Charts.
All lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Chart is 55.8437 and it is neutral as it shows no negative
divergence or failure swings. The Daily MACD continues to remain bullish as it
trades above its signal line and it is not in overbought or oversold range.
The Markets shall continue to remain in a broad range
defined with the levels of 5200 acting as immediate top but this consolidation
is expected to remain a positive consolidation with an upward bias given the
fact that the NIFTY and stock futures have continued to add Open Interest and
the NIFTY PCR stands at 1.49, still leaving a significant gap on the upside.
This, under normal circumstances, indicates the undercurrent remaining buoyant and
intact.
Given the penultimate day of expiry, the session is likely
to remain dominated with rollover centric activities for today and tomorrow
also, and this will, in turn, likely the keep the Markets either range bound or volatile and
profit taking bout may happen. While strictly avoiding shorts, selective purchases
may be made but profits need to be vigilantly protected. Overall, positive outlook
is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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