MARKET TREND FOR
TODAY August 28, 2012
The Markets had a thoroughly disappointing session as it
opened on a mildly positive note and then drifted throughout the rest of the session
and ended the day with modest losses. The Markets opened positive and gave
their intraday high of 5399.15 in the very early minutes of the trade. The key
levels 5400 continued to pose resistance as the Markets reversed the trend
immediately after its day’s high and continue to gradually decline for the rest
of the session. The Markets went on to give the day’s low of 5346.65 and
finally ended the day around those levels at 5350.25, posting a modest loss of
36.45 points or 0.68%. It has formed a similar top and lower bottom on the
Daily High Low Charts.
Today’s Market
behavior is expected to remain similar to that of yesterday. A modestly
positive to flat opening can be expected and then the Markets are expected to
remain subdued with a downward bias. However, with the expiry week on, the
session is also likely to remain dominated with rollover centric activities.
For today, with the levels of 5400 remaining as immediate
resistance, the supports come in at 5330 and 5315 levels.
The lead indicators continue to paint a little weak picture.
The RSI—Relative Strength Index on the Daily Chart is 56.4567 and it has
reached its lowest value in last 14-days, which is bearish. Further, the RSI
has set a new 14-year low whereas the NIFTY has not yet, and this is Bearish
Divergence. The Daily MACD continues to trade above its signal line.
With the Open Interest figures of the current month
remaining overall irrelevant due to rollovers count, given the technical patterns and the overall
structure of the Charts, the levels have 5400 which we have been mentioning as
one of the key levels have remained as a major resistance point. So, as we have
said in our last couple of editions, this levels shall act as a immediate top
and sustainable up move shall occur only after the Markets moves past this
levels.
All and all, the Markets may remain in a range, also bit
volatile given the rollover activities but are likely to trade with overall
downward bias. However, selective outperformance would be seen. It is advised
to remain highly stock specific and keep protecting profits at higher levels.
Overall, cautious approach is advised for the day.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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