MARKET TREND FOR TODAY
July 19, 2012
The Markets have
tried to find a bottom yesterday as it showed a smart recovery after lackluster
opening and found support precisely at the levels mentioned in our past
editions of Daily Market Trend Guide. The Markets opened on a flat note and
after trading flat slipped a bit to
trade in the negative. The Markets gave its intraday low of 5169.05 in the
later morning trade. This was against the support levels of 5170 mentioned by
us. The Markets saw smart recovery from those levels as it recovered again to
trade flat. After moving in a range, it perked up further in the afternoon
trade and went on to give the day’s high of 5222.85. It finally ended the day
at 5216.30, posting a modest gain of 23.45 points or 0.45%. The Markets have
formed a lower top and lower bottom on the Daily High Low charts.
For today, expect the Markets to give a decently positive
opening on back of strong technicals supported by positive global cues. The
Markets have ended the day near the high point of the day after taking support
at critical support levels and today, it is expected to continue with that up
move. The crucial point here would be to see if the Markets is able to
capitalize on this positive opening and therefore, the intraday trajectory
would be critically important today.
The levels of 5265 and 5310 are immediate resistance on the
Charts and the levels of 5170 continue to remain critical support level.
The RSI—Relative Strength Index on the Daily Chart is 52.56
and it shows no negative divergence or failure swing. The Daily MACD continue
to trade below its signal line. The NIFTY and Stock futures have continue to
add Open Interest which indicates that apart from some short covering that was
seen, fresh shorts too have been added.
As of now, the technicals indicate that the Markets have
tried to inch ahead out of the consolidation range again and continuation of
that up move is expected, at least in the initial session. The key would be
able to capitalize on that and thus the importance intraday trajectory. While
protecting profits at higher levels, selective purchases may be made. Overall,
positive outlook is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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