MARKET TREND FOR TODAY
August 01, 2012
Yesterday was a day of positive consolidation in th Markets.
The Markets opened on a moderately positive note, dipped lower and then smartly
recovered to end the day with decent gains. The Markets opened on a mildly
positive note and then briefly trading in the green, dipped in the negative and
in the early afternoon session, went on to give the day’s low of 5154.05.
However, in the second half of the session, the Markets staged a smart recovery
after initial knee-jerk reactions to the RBI Announcements wherein it cut the
SLR, rose again to trade in the positive territory. It went on to give the
intraday high of 5234.55, and finally ended the day at 5229, posting a decent
gain of 29.20 points or 0.56%. It has formed a higher top and higher bottom on the Daily High Low Charts.
Today’s analysis continues to remain more or less similar to
that of yesterday. We can see positive consolidation in the Markets and this
can keep the Markets little volatile, range bound but with upward bias. The two
external events that the Markets would be watching out for is the Fed Meet
today and the ECB meet tomorrow wherein, the zero rate regime and the liquidity
infusion are expected to continue.
For today, the levels of 5250 and 5268 shall act as
immediate resistance and the levels of 5195 and 5170 are expected to act as
immediate supports.
The RSI—Relative Strength Index on the Daily Chart is 55.16
and it is neutral as it shows no negative divergence or failure swings. The
Daily MACD continues to trade below its signal line.
The FIIs have remained net buyer in Cash Segment and
Derivatives segments. NIFTY and Stock futures have continued to add in total
open interest.
Having said this, overall, positive consolidation is
expected to continue. Any little bouts of weakness, or profit taking, as seen
yesterday should be used in making selective purchases. Shorts should be
avoided. Overall, positive optimism is advised as all indicators remain intact
and bias remains positive.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.