MARKET TREND FOR TODAY
November 27, 2012
The Markets spent yet another session consolidating and
resisting to its critical levels as it ended the day yesterday with very minor gains.
The Markets opened on a positive note and gave its intraday high of 5649.20 in
the very early minutes of the trade. However, in the morning trade, it then
kept losing ground gradually as it pared all of its gains until afternoon. The
Markets saw some recover again in the second half of the trade, but again pared
its gains by the end of the session. The Markets finally managed to end the day
at 5635.90, posting a minor gain of 9.30 points or 0.17% while forming a higher
top and higher bottom on the Daily High Low Charts.
For today, expect the Markets to see some positive strong
opening on back of positive global cues. The key thing for the Markets would be
to capitalize on the positive and strong opening and maintain a positive upward
rising trajectory. The Markets would still remain in a broad trading range
after expected positive opening.
The Markets have been resisting to the key levels of 5630
and the 50-DMA and these levels shall continue to remain the key resistance levels
along with the 5700 levels. The supports would come in at 5630 and 5570 levels.
There are no directional triggers for the Markets on the up
side. The RSI—Relative Strength Index on the Daily Charts is 49.0562 and it is
neutral as it shows no negative divergence or failure swings. The Daily MACD is
bearish as it continues to trade below its signal line.
We are into expiry week of the current derivative series and
we have a truncated week this time as tomorrow is a trading holiday on account
of Gurunanak Jayanti.
Having said this, even with the positive opening around the
expected levels on back of positive global cues, it would be critically
important to see if the Markets are able to maintain those opening gains and
capitalizes on this positive opening. It is also important to note that even
this positive opening will cause the Markets to open around its critical
resistance levels and is likely to find resistance there.
All and all, there are chances that the Markets gradually
pares its gains as we go ahead in the session. There are also chances that we
see good amount of volatility ingrained in the Markets today. It is advised to
remain selective while taking fresh positions and keep protecting profits on
either side. Overall cautious outlook is continued on the Markets.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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