MARKET TREND FOR
TODAY
September 06, 2012
Yesterday remained a thoroughly disappointing session for
the Markets as the Markets opened weak on weak global cues and further drifted
below its support levels to end the day with losses. The Markets opened on a
negative note and after trading in a
range with capped losses, further dipped into the red in the second half of the
session. The Markets gave its intraday
low of 5215.70 in the afternoon trade. The Markets never made any attempts to
recovered as it continued to trade again in a capped range until the end of the
session and finally ended the day at 5225.70, posting a net loss of 48.30
points or 0.92%, forming a lower top and lower bottom on the Daily High Low
Charts.
Today’s analysis would again remain more or less on the same
line as that of yesterday as the Markets are expected to open on a flat note
and look for directions. The Markets are expected to remain in corrective mode
and thus intraday trajectory would continue to remain important to decide the
trend for the day.
The Markets have immediate support now at its 100-DMA levels
at 5160 and immediate resistance at 5265 and 5280 levels.
The lead indicators continue to point towards weakness
remaining for some more time. The RSI—Relative Strength Index on the Daily
Chart is 41.4279 and it has reached its lowest value in last 14-days which is
bearish. The Daily MACD continue to trade below its signal line.
NIFTY has shed a nominal Open Interest yesterday while stock
futures have continue to add open interest indicating creation of shorts in the
stock futures along with some unwinding in NIFTY. NIFTY Open Interest PCR
stands at 0.90 as against 0.91 yesterday.
Having said this, one of the external event which is
important and should be watched is the ECB Meet today. Any quantitative easing
would result into fresh inflows into the emerging markets and this can reverse
the trend of the Markets. So, it is continued to be advised to remain light on
positions and avoid aggressive positions on either side. Highly stock specific
and selective approach with cautious outlook is advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
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