MARKET TREND FOR
TODAY
August 7, 2012
After two days of brief consolidation on the Daily Charts,
the Markets have again attempted a breakout on back of strong and favorable
technicals fuelled by positive global cues as it ended the day with decent
gains after opening on a strong note. The Markets opened on a strong and
positive note and importantly maintained its gains throughout the session.
After opening on a firm note, the Markets move sideward gradually adding gains
as it gave its intraday high of 5293.20. The Markets kept moving in a 20-odd
point range and it finally ended the day on a strong footing at 5282.55,
posting a decent gain of 66.85 points or 1.28%. It has formed a sharply higher
top and higher bottom on the Daily High Low Charts.
Today, after yesterday’s up move, a quiet opening in the
Market is expected with the Markets opening flat and then are expected to
consolidate again, looking for directions. The Markets have ended near a double
top resistance, as evident from the Chart and it would be critical to see if
they move up further or consolidate around these levels.
For today, the levels of 5285 and 5340 are expected to act
as resistance and the levels of 5250 and 5210 are expected to act as immediate
supports.
The RSI—Relative Strength Index on the Daily Chart is
59.3156 and it has reached its highest value in last 14-days which is bullish.
It does not show any negative divergence. The Daily MACD has reported a
positive crossover and is bullish as it now trades above its signal line.
On the Candles, A
Rising Window occurred. Such formation usually implies a continuation of
the bullish trend.
The NIFTY and Stock Futures have continued to add in total
Open Interest and the NIFTY PCR stands at 1.08 as against 1.11.
Overall, continuation of up move is expected but at the same
time, some consolidation and minor profit taking too cannot be ruled out. It is
advised to protect profits at higher levels and selective purchases should be
done. However, aggressive positions should still be avoided. Balanced approach
with caution and positive outlook is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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