MARKET TREND FOR TODAY
December 03, 2012
The Markets had an yet another session on Friday, wherein it
ended the day with a decent gain to take its tally of straight gains to over
250 points in last four sessions. The Markets opened on a quiet note and lost
some ground after a quietly positive opening. However, the Markets continued to
remain in the positive territory. Thereafter, the Markets reversed its intraday
trend and until the end of the session, remained in upward rising channel. It
went on to give the day’s high of 5885. It finally ended the day at 5879.85,
posting a decent gain of 54.85 points or 0.94%, while continuing to
form a higher top and higher bottom on the Daily High Low Charts.
For today, expect the Markets to begin its day on a quietly
positive note and look for directions. The Markets are now in “Overbought”
territory and there are high degree of chances that we see some correction
setting in. The intraday trajectory would be important to decide the trend for
today.
For today, the levels of 5925 is the another major
resistance to look for and the supports come in much lower at 5810 and 5770
levels.
The lead indicators are now in “Overbought” territory. The
RSI—Relative Strength Index on the Daily Chart is 71.8665 and it has reached
its highest value in last 14-days which is bullish. It does not show any
bullish / bearish divergence. But it now trades in “OVERBOUGHT” territory. The
Daily MACD trades above its signal line.
On the Weekly charts, the RSI is 67.3953 and shows no bullish / bearish
divergence. The Weekly MACD continues to trade above its signal line.
On the Derivative side, the NIFTY December futures have added
over 15 lakh shares or 8.49% in total open interest which is positive sign, but
at the same time, the NIFTY PCR has gone up to 1.11 as against 1.06.
Given the pattern analysis of the Charts, the NIFTY is
approaching a major resistance at 5925, just above 40-odd points from Friday’s
close. Further to this , the Markets are any way currently in “OVERBOUGHT”
territory. Even if the Markets continue to show buoyancy for a short time,
there are high degree of chances that some correction sets in after a brief
positive trade.
All and all, the Markets are now in “Overbought” territory.
Any bullish up move that it continues to show should be not taken with a pinch
of salt and high degree of caution is advised. It is highly recommended that
fresh buys should be avoided at this juncture until the Markets see some
consolidation / minor correction from this juncture, which is now due. Overall, heavily cautious
outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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