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MARKET TREND FOR TODAYExpect the Markets to open on a flat to mildly positive today and also expect the  Markets to continue to consolidate or mildly correct. The Markets have already shown signs of consolidation on Tuesday as it has formed a lower top. In this case, the levels of 5630 has now become  the immediate resistance levels in form of a major double top.

For today, the levels of 5630 and 5650 shall act as resistance. There will be no runaway up move in the Markets until the Markets moves pas these levels.

The lead indicators too  continue to remain overstretched. The RSI--Relative Strength Index on the Daily Chart is 74.37 and though it is neutral it is trading in OVERBOUGHT territory. The Daily MACD too continue to trades above its signal line and is almost oversold.

Having said this, the impending political uncertainty that has come up due to withdrawal of support by TMC at the centre may also  cause some mildly corrective reactions in the Markets. Though this was much expected, the reasons for corrective behavior of the Markets would be more technical. HOWEVER, this holds when there are no rollbacks. If the Government relents to the pressure and induces any roll backs of the announcements made, it would be taken in extremely bad and negative taste by the Markets and international community as a whole.

As of today, range bound corrective movements would be seen, and intermittent profit taking bouts can also be expected. It is advised to avoid aggressive buying and continue to protect profits vigilantly. Any longs or shorts should be taken very selectively. Cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
http://milan-vaishnav.blogspot.com
+91-98250-16331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com