MARKET TREND FOR TODAY
November 15, 2012
The short session of the Mahurat Trading remained under
pressure on Tuesday as the Markets continued to reel under pressure in the
entire hour and half long trading session and ended the day with moderate
losses. The Markets opened on a negative note and continued to remain negative
in the entire trading session. The Markets traded negative in the capped range
and towards the end, slipped further to
give the day’s low of 5660.35. It did not recovered at all and finally ended
the day at 5666.95, posting a moderate loss of 16.75 points or 0.29%, forming a
lower top and lower bottom on the Daily High Low Charts.
Today, after a holiday yesterday , expect the Markets to
open on a mild to moderately negative note. There is no structural strength
seen on the Charts and therefore, the view on the Markets continue to remain
neutral to negative with a downward bias. The levels of 5730 have again held
out as resistance so far and it is likely that the Markets tests the support
levels of 5630 again.
Today, the levels of 5700 and 5730 is likely to act as
resistance and the levels of 5630 and 5610 are likely to act as supports.
The lead indicators continue to remain neutral to negative.
The RSI—Relative Strength Index on the Daily Chart is 49.7985 and it is neutral
as it shows no failure swings or bullish / bearish divergence. The Daily MACD
continues to remain bearish again as it trades below its signal line.
In the Tuesday’s session the NIFTY Futures have shed 0.60%
in Open Interest. This indicates moderate unwinding of positions in the NIFTY.
Same trend has been seen with stock futures.
Overall, as we have been mentioning in our last couple of
editions of Daily Market Trend Guide, no sustainable up move is likely to occur
until the Markets moves past the levels of 5730 and upwards. Further, this will
keep the Markets in a broad range with the support of 5630 and any breach of
these levels will see the Markets getting
weaker.
All and all, the Markets shall continue to trade in a capped
range with downward bias until its moves past the levels mentioned. Until this
happens, there remains a theoretical possibility of the Markets testing the
supports of 5630 again. It is advised to continue to remain very selective in
taking fresh positions as sectoral outperformance would be seen. Neutral to
cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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