MARKET TREND FOR
TODAY
August 30, 2012
The pressure continued on the Markets today as it ended with
losses on the fourth day in a row after opening on a mildly positive note. The
Markets opened on a flat to mildly positive note and like it did in previous
sessions, gave its intraday high of 5343.85 in the very early seconds of the
trade and then immediately dipped into the red. The Markets thereafter traded
in a range with capped losses but started losing further ground in the second
half of the trade. The session remained dominated with heavy rollover
activities as the Markets gave its intraday low of 5282.70 towards the end of
the session. The Markets closed almost there at 5287.80, posting a loss of
46.80 points or 0.88% while forming a lower top and sharply lower bottom on the Daily High Low Charts.
The weakness that we saw yesterday is likely to continue
today also, at least in the initial trade. The Markets are likely to open
moderately lower and shall trade weak initially heavily depending upon the
intraday trajectory that it forms later. Today is the expiry day of the current
derivative series and we will see the session continuing to remain dominated
with rollover centric activities.
The levels of 5280 and 5251 is expected to act as support
today in form of 50-DMA.
The lead indicators continue to show some weakness. The RSI—Relative
Strength Index on the Daily Charts is 47.7974 and it has reached its lowest
point in last 14-days which is bearish. It does not show any bullish / bearish
divergence either. The Daily MACD is bearish as it trades below its signal
line.
The Markets yesterday have taken support on the 5280 levels
and have closed little above it. If the Markets moves below those levels , the
next support come in at 5251, which is the 50-DMA for the Markets.
Today is also the expiry day of the Markets and this shall
keep the Markets volatile with a downward bias. It may happen that the Markets
trades in a capped range but at the same time, the rollovers can bring
volatility and sharp movements on the either side today. Overall, it is advised
to avoid any aggressive stance in the Markets until the Markets show some
stability as the 5400 levels have held out as key resistance as the Markets
have corrected over 140 points since then. Continuation of highly selective
approach with caution is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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