MARKET TREND FOR TODAY
September 11, 2012
The Markets spent the session in positive consolidation as
it traded volatile, but in a capped range to end the day with nominal gains.
The Markets opened on a positive note traded in extremely capped range. After
giving day’s high of 5375.45 in the afternoon trade, the Markets saw some
sudden paring of gains. It pared all of its gains to trade flat and also dipped
further into negative to give the day’s low of 5349.10. The Markets recovered
from those levels, however, but traded again in extremely capped range. It
finally ended the day at 5363.45, posting a nominal gain of 4.75 points or
0.09%, forming a higher top and higher bottom on the Daily High Low Charts.
Today also, we are likely to see a modestly negative opening
as the Markets might consolidate or show some little profit taking after
closing into green since last four sessions. In even of consolidation, intraday
trajectory would be critically important and so will be the Market breadth and
the volumes.
The levels of 5400 would continue to pose as immediate
pattern resistance with supports coming in at 5330 and 5305.
The lead indicators do not point and directional trend. The
RSI—Relative Strength Index on the Daily Chart is 57.8675 and it is neutral as
it shows no bullish / bearish divergence or failure swings. The Daily MACD
continues to trade below its signal line.
Further, if we look at F&O Statistics, the NIFTY futures
have shed over 16.50 lakh shares in open interest and the stock futures too
have shed over 37 lakh shares in Open Interest. This signifies little profit
taking yesterday from the day’s high, but at the same time, the volumes have
remained lower than average. This typically signifies consolidation. The NIFTY
PCR stands at 0.96 as against 0.97.
Given this reading, we are once again likely to see a range
bound session again with no directional trigger. Consolidation might continue
and this is likely to keep the Markets range bound and bit volatile. Baring a minor correction for a day or two,
the overall bias remains upside with the 5400 acting as immediate major pattern
resistance. While avoiding shorts, profits too should be protected at higher
levels. Overall, cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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