MARKET TREND FOR
TODAY August 24, 2012
What seemed to be a very buoyant session initially fizzled
out in the second half of the trade as the Markets once again failed to give a comprehensive
breakout and ended the day flat with negligible gains. The Markets opened
positive and sustained decent gains as it gave its intraday high of 5448.60 in
the afternoon trade. However, the Markets changed their course and after making
a top, gradually gave up all of its morning gains. It also saw one sharp cut as
it dipped into the red and gave day’s low of 5393.85. It finally ended the day
at 5415.35 as it recovered a bit and ended the day flat with negligible gain of
2.50 points or 0.05%. It has formed a higher top and similar bottom on the
Daily High Low Charts.
Markets have found it hard to remain above the key levels of
5400 and has struggled to give a comprehensive breakout from those levels.
Yesterday, it came off from its highs and today, the Markets are expected to
open on a negative note, perhaps below the key levels of 5400 and resist there
for further up move. The intraday trajectory it forms post opening and the
behavior of the Markets vis-à-vis the levels of 5400 would be important.
The levels of 5420 an 5450 are immediate resistance levels
on the Charts and the levels of 5375 and 5340 are key supports.
The RSI—Relative Strength Index on the Daily Chart is 67.2580
and it is neutral as it shows no negative divergence or failure swings. The
Daily MACD continues to trade above its
signal line. The NIFTY and Stock Futures have added nominal open
interest and the NIFTY PCR stands unchanged at 1.32.
The Markets have ended the day yesterday at 5415.35 and
today, if it opens below the levels of 5400, the same levels would act as
resistance unless the Markets moves past those levels. So, in event of a weaker
opening, it would be important for the Markets to trade above the levels of
5400 and if not done so, some further corrective weakness can be expected.
Overall, the behavior vis-à-vis the levels of 5400 is
important and the levels shall act as resistance if the Markets opens below it
and fails to move pas that level. Continuance of selective approach is advised
and profit on long positions should be vigilantly protected. Selective and
cautious approach is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.