MARKET TREND FOR TODAY
August 3, 2012
After four days of ending with gains the Markets today took
some breather as it continued to consolidate and ended with minor losses on expected
lines. The Markets opened moderately lower and continued to drift as it gave
its intraday low of 5209.95 in the afternoon trade. Thereafter, it did see some
recovery and came considerably off its morning lows. The Markets made an
attempt to recover and at one time came
almost to its previous close levels. It finally ended the day at 5227.75,
posting a minor loss of 12.75 points or 0.24%. The sessions remained in a very
capped range and the Markets formed a slightly lower top and slightly lower bottom
on the Daily High Low charts. The volumes remained around the average.
Today, expect the Markets to open on a moderately negative
note and look for directions. The Markets are expected to continue to see minor
correction and thus the intraday trajectory would be important. The volumes too would be critical. Yesterday’s
volumes have remained much below average.
The levels of 5265 and 5280 are immediate resistance levels on the charts and the
levels of 5201 and 5185 are immediate supports.
The RSI—Relative Strength Index on the Daily Charts is 54.73
and it shows no negative divergence or failure swings. The Daily MACD continues
to trade below its signal line.
The NIFTY and Stock Futures have added 2.8 lakh shares and 1
Crore shares respectively in Total Open Interest. In yesterday’s session, the
important thing to note is that with the minor correction that we saw, there
has been significant drop in the volumes. This is a positive factor. Today
also, if the Markets continue to see minor correction, the volumes are expected
to be on the lower side. The intraday trajectory too would be important. The
NIFTY PCR stood unchanged at 1.11 yesterday.
Overall, it would be perfectly fine if the Markets continues
to see some minor correction. However, this would still not be the Market to
Short aggressively. In the immediate short term perspective, there is no
negative breach on the Chart. The 50-DMA has cut 200-DMA from below giving a positive
crossover. This is bullish in the immediate short term.
All and all, it would be perfectly healthy for the Markets
if it sees some correction, though a minor one, one much lower volumes. This
will make it sustainable for the further up move as the overall set up looks
positive. With every such minor corrections, selective purchases should be
made. Profits too should be protected on either side. Overall, positive outlook
is advised as undercurrent remains intact.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.