MARKET TREND FOR
TODAY
September 05, 2012
The Markets managed to hang on to its 50-DMA as support at
Close levels as it began the day weak, but saw some recovery in the second half
of the session to end the day with
modest gains. The Markets opened on a moderately negative note and traded in a
capped range for half of the session.
The Markets thereafter saw some sharp recovery in the second half of the
session. It its losses and went on to trade in positive territory. It also gave
its intraday high of 5278.35 towards the end of the session. It finally ended
the day at 5274, posting a modest gain of 20.25 points or 0.39%. In the
process, the Markets have formed a slightly lower top and lower bottom on the
Daily High Low Charts.
Expect the Markets to open again on a modestly negative note
and look for directions. The Markets have been trapped in a very narrow range
and the today’s opening will cause it to open near / around its 50-DMA levels
again. Yesterday, it had resisted to the levels of 5280 which is a pattern
resistance for the Markets. The intraday trajectory, would thus, continue to
remain important.
The levels of 5280 and 5325 are immediate resistance on
Charts and supports come in at 5262 and 5225 levels.
The RSI—Relative Strength Index on the Daily Charts is 46.9176
and it is neutral as it shows no failure swings or positive / negative
divergence. The Daily MACD continues to trade below its signal line.
The F&O data continues to show divergent picture as the
NIFTY has shed over 7.5 lakh shares in yesterday’s up move which shows heavy
short covering from lower levels. It would be important to see if fresh longs
are created after the shorts are covered. The NIFTY PCR stands unchanged at
0.91.
There was a pattern resistance at 5280 levels which the
NIFTY breached and attempted to take support around its 50-DMA at Close so far.
Today’s opening will again see the Markets struggling around those levels
again. The volumes have remained around its average.
It can be concluded that the Markets are not completely out
of the woods. The session will remain range bound and also bit volatile with
sharp movements expected on either side. The Markets will have to see above
50-DMA or at least its filters to avoid weakness at Close. It is advised to
avoid aggressive positions and remain extremely selective and light so far as
fresh positions are concerned. Overall, continuance of cautious outlook is
advised for today.
Milan
Vaishnav,
Consulting
Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.