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MARKET TREND FOR TODAY August 02, 2012
The Markets had a range-bound session yesterday wherein it positive consolidated on expected lines as it ended the day with moderate gains forming a higher top and higher bottom on the Daily High Low charts.
For today, again, the analysis would remain on more or less the same lines as the Markets are expected to open moderately positive and continue to move in capped range and consolidate. Only difference would be that they are approaching some minor resistance levels which it needs to guard against.
For today, the levels of 5258 and 5280 are immediate resistance levels. The support exists at 5210 and 5185 levels.
All lead indicators continue to remain in place. The RSI--Relative Strength Index on the Daily Chart is 56.11 and it is neutral as it shows no negative divergence or failure swings. the Daily MACD continues to trade below its signal line. The NIFTY and Stock Futures have continued to add in Total Open Interest.
The FED Meet yesterday remained an non-event as it continued its 0.00%-0.25% interest rate regime. Also it did not announce any new measures. However reducing of SLR by RBI has effective increased the liquidity supply and is likely to remain a positive factor. The another external event to watch for would be the ECB meet today.
All and all, the positive consolidation is likely to continue. The Markets are likely to remain little volatile and remain in a range. There are also chances that it slightly reacts at the resistance levels today. But with the indicators perfectly in place it would not be more than some consolidation as the undercurrent and the trend remains intact. It is advised to continue to make selective purchases. Overall, continuation of cautious optimism is advised for today.
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MARKET TREND FOR TODAY August 02, 2012
The Markets had a range-bound session yesterday wherein it positive consolidated on expected lines as it ended the day with moderate gains forming a higher top and higher bottom on the Daily High Low charts.
For today, again, the analysis would remain on more or less the same lines as the Markets are expected to open moderately positive and continue to move in capped range and consolidate. Only difference would be that they are approaching some minor resistance levels which it needs to guard against.
For today, the levels of 5258 and 5280 are immediate resistance levels. The support exists at 5210 and 5185 levels.
All lead indicators continue to remain in place. The RSI--Relative Strength Index on the Daily Chart is 56.11 and it is neutral as it shows no negative divergence or failure swings. the Daily MACD continues to trade below its signal line. The NIFTY and Stock Futures have continued to add in Total Open Interest.
The FED Meet yesterday remained an non-event as it continued its 0.00%-0.25% interest rate regime. Also it did not announce any new measures. However reducing of SLR by RBI has effective increased the liquidity supply and is likely to remain a positive factor. The another external event to watch for would be the ECB meet today.
All and all, the positive consolidation is likely to continue. The Markets are likely to remain little volatile and remain in a range. There are also chances that it slightly reacts at the resistance levels today. But with the indicators perfectly in place it would not be more than some consolidation as the undercurrent and the trend remains intact. It is advised to continue to make selective purchases. Overall, continuation of cautious optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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