Friday, August 10, 2012

Daily Market Trend Guide -- Friday, August 10, 2012

Due to a technical glitch, we have not able to publish your copy of Daily Market Trend Guide in regular PDF Format. We are reproducing the text version of "Market Trend For Today". Inconvenience caused is seriously regretted.
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MARKET TREND FOR TODAY

Expect the Markets to open today on a mildly negative note and look for directions. Primarily speaking, the onset of corrective activity that begun yesterday after the Markets came off its highs is likely to continue and the intraday trajectory would guide  the consolidation activities.

The levels of 5368 an 5390 will continue to act as resistance and the supports are expected to come in at 5305 and 5170 levels.

The RSI--Relative Strength Index on the Daily Chart is 61.49 and it shows no negative divergence or failure swing. The Daily MACD continues to trade above its signal line.

Having said this, with reference to the yesterday's session, the Markets have formed a marginally lower top and lower bottom on the Daily High Low Charts. This has made the levels of 5378, a temporary top for the Markets. Any sustainable fresh up move shall occur only after the Markets moves past these levels. Until then, corrective / consolidation activities shall continue.

The Markets are also likely to continue to give some negative reaction to the dismal June IIP numbers which were negative. Overall weaker technials shall aggravate the reaction.

All and all, the session is likely to remain volatile today, like it has been in previous session and consolidation / minor correction is likely to continue. It is continued to be advised to refrain from aggressive longs and maintain liquidity. Fresh positions may be taken, but on highly selective basis. The intermittent bouts of profit taking may be seen. Overall, continuance of cautious outlook is advised for today.

Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
 

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