MARKET TREND FOR
TODAY
August 8, 2012
The Markets had yet another decent session wherein it
continued with its up move and ended the day with decent gains after a flat
opening. The Markets opened on a quietly positive note and for the entire
session, remained in positive rising trajectory as it kept gradually making new
highs. The Markets went on to give its intraday high of 5350.10 towards the end
of the session and ended the day at 5336.70, slightly off its highs but still
posting decent gain of 54.15 points or 1.03%. The volumes continued to improve.
It has made a sharply higher top and higher bottom on the Daily High Low
Charts.
The Markets today, again are expected to open on a
moderately positive note and look for directions but this time, it has closed
near one of the Double Top resistance
and has a near term resistance further ahead. So, key would be to see the
intraday trajectory the Markets form and the behavior of the Markets vis-à-vis these
two resistance levels.
Today, the levels of 5360 and 5398 would be the two pattern
resistance levels that the Markets face and the behavior of the Markets vis-à-vis
these two levels would be critical to see.
The lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Chart is 63.3721 and it has reached its highest
value in last 14-days which is bullish. It does not show any negative
divergence. The Daily MACD continues to trade above its signal line.
The volumes have moderated in yesterday’s rise, with most of
the Index and Sectoral Index components have traded either around the average
volume or below it. Though NIFTY and Stocks have both continued to add in total
open interest.
Going by this, it is likely that the Markets continues with
its up move in the opening session. However, going by pattern analysis, it is
important to note that at the same time, Markets would be near their pattern
resistance shown in the Charts. There are chances that we see intermittent
profit booking at higher levels and a mild correction is seen. It is thus
advised to keep protecting profits at higher levels and remain ultra selective
in taking fresh positions. Overall, positive caution is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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