MARKET TREND FOR TODAY
October 15, 2012
After witnessing a heavy short covering on Thursday, the
Markets on Friday continued with their corrective actions, quite on expected
lines. The Markets opened on a moderately
negative note and traded in a capped range. In the later part of the morning
trade, it did made an attempt to recover as it went in the green as it gave its
day’s high of 5725. It could not sustain those levels however and dipped into
the red again. The Markets then transformed them into falling trajectory for
the rest of the session and kept losing ground gradually. It gave its intraday
low of 5659.35 and finally ended the day at 5676.05, posting a net loss of 32
points or 056%, as it formed a similar top and slightly higher bottom on the
Daily High Low charts.
Today, expect a
quiet and listless start to the Markets. The Markets are expected to open on a
quiet and mildly negative note and look for directions. The intraday trajectory
would be crucial to determine the trend and the correction in the Markets is
likely to continue and the movement is expected to remain range bound.
The Markets shall
have a major support around 5630 support levels and below that, next support
would exist lower at 5560.
The RSI—Relative Strength
Index on the Daily Chart is 57.7696 and it is neutral as it shows no negative
divergence or failure swings. The Daily MACD continues to trade below its
signal line and thus continues to remain bearish.
On the Weekly
Charts, the RSI is 63.8680 and here too, it remains neutral with no failure swings
or bearish / bullish divergences. The
weekly MACD continues to trade above its signal line.
In the previous session,
the NIFTY has further went on to shed 4.98 lakh shares or 1.97% in Open
Interest. This signifies that there has been further long unwinding and such
unwinding has continued in the last 2-3 sessions.
Having said this,
there are all chances that even with some intermittent pullbacks, the Markets
may overall remain in a range and with a downward bias. The behavior of the
Markets vis-à-vis the levels of 5630 would be important and any downward breach
will induce further weakness. While remaining light on the positions, caution
is advised for today.
Milan Vaishnav,
Consulting Technical
Analyst,
+91-98250-16331
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