MARKET TREND FOR
TODAY September 04, 2012
What started out as a relatively buoyant session, turned out
to be a dampener as the Markets pared
all of its opening gains during the course of the session and ended the day
with very negligible gains on low volumes. The Markets opened on a relatively better
note and gave its intraday high of 5295.80 in the very early minutes of the
trade. The Markets thereafter slowly and gradually pared all of its gains as it
transformed into falling trajectory. In the mid session, it dipped into the red
and gave its intraday low of 5243.15. It did made an attempt to recover as it
came back into the green but drifted again to trade in capped range for the
rest of the session. It finally ended the day at 5253.75, posting a very
negligible loss of 4.75 points or 0.09% forming a slightly lower top but
slightly higher bottom on the Daily High Low Charts.
Today’s analysis would remain more or less similar to that
of yesterday. The Markets have managed to hang on around 50-DMA levels at Close
as it has closed just a notch below that. The Markets are expected to open on a
mildly positive note and look for directions. The behavior of the Markets vis-à-vis
the levels of 50-DMA would be critically important.
The levels of 5280 and 5310 are resistance levels and
supports come in at 5230 and 5205 levels.
The RSI—Relative Strength Index on the Daily Chart is
44.0302 and it has reached its lowest value in last 14-days which is bearish.
It does not show any bearish or bullish divergence. The Daily MACD continues to
trade below its signal line.
Having said this, as mentioned earlier, the behavior of the
Markets vis-à-vis the levels of 50-DMA is critically important. The Markets
will have to trade above those levels, in order to avoid any further weakness
creeping in.
All and all, range bound but volatile trade may be expected.
The Markets may remain range bound but at the same time, volatile movement on
either side may not be ruled out. The levels of 50-DMAat Close would be
important because further weakness cannot be ruled out if the Markets dips
below that critical levels. Sectoral outperformance would be observed. Highly
selective approach with caution is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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