MARKET TREND FOR TODAY
December 17, 2012
The Markets ended a losing streak on Friday as it ended the
day on back of short covering in the last hour of the trade as it ended the day
with modest gains. The Markets opened on Friday on a flat note and it soon
dipped into the negative territory. It traded with capped losses while it gave
its intraday low of 5839.15. It traded back into the positive but again pared all of its gains in the
second half of the session to dip into the red. However, the last hour of the
trade saw some short covering and the Markets again went to trade into
positive. It also went on to give the day’s high of 5886.10 and ended the day
near the high point of the day at 5879.60, posting a modest gain of 28.10
points or 0.48%.
The Markets had a corrective and more of directionless week
that ended Friday. Today also, it is likely that we see a flat to mildly
negative opening in the Markets. The intraday trajectory would continue to
remain critical and the levels that held out as resistance would continue to
hold as resistance in this week too. Therefore, the Markets remain in a range
and the analysis would continue to remain more or less similar.
For today, the levels of 5920 and 5950 shall act as
resistance and the levels of supports are 5830 and 5790. Unless the Markets breach these levels on the upside
or down side, they would continue to trade in a broad range.
The lead indicators too point towards no direction. The RSI—Relative
Strength Index on the Daily Chart is 63.0010 and is neutral as it shows no failure
swings or bullish or bearish divergence. The Daily MACD trades above its signal
line. On the Weekly Charts too, the RSI is 66.4408 and is neutral as it shows
no negative divergence or failure swings. The Weekly MACD trades above its
signal line.
On the derivative front, NIFTY Futures have shed over 1.36
lakh shares or 0.64% in Open Interest.
This signifies that the spurt that we saw in last hour of the trade was more
due to short covering.
All and all the Markets to remain in a range and as we have
been mentioning in last couple of editions, no sustainable up move to occur
until the Markets breaches the levels of 5950 on the upside. The Markets shall
remain in a range, and also bit volatile. While taking longs on very selective
basis, profits should be vigilantly protected. Overall, neutral to mildly
cautious outlook is advised.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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