Monday, December 17, 2012

Daily Market Trend Guide -- Monday, December 17, 2012

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


No comments:

Post a Comment

Note: Only a member of this blog may post a comment.