MARKET TREND FOR TODAY
February 11, 2013
Friday’s session remained very weak and disappointing for
the Markets as it managed to hang on near its lower end of the trading range
which was it support for past couple of weeks but in the second half saw a
sharp cut from those levels to end the day with losses, yet again. The Markets
opened on a positive note and gave its intraday high of 5953.70 in the early
minutes of the trade. The Markets traded
with capped gains in the morning trade but as it has been doing in last couple
of session, transformed itself into falling trajectory and erased all of its
gains to trade in the negative. The Markets saw some further pressure building
up as it saw a sharp cut towards the end of the session as it went on to give
the day’s low of 5883.65. It recovered a bit from those levels but still ended
the day at 5903.50, posting a net loss of 35.30 points or 0.59%, forming a
sharply lower top and lower bottom on the Daily High Low Charts.
Today’s Markets are likely to trade on similar lines. The
Markets are likely to see a totally flat opening and look for directions and
the intraday trajectory would be crucially important to decide the trend for
today. The Markets have breached the levels of 5950 and therefore, this level
is likely to act as resistance for today.
For today, the levels of 5950 and 5995 shall act as
resistance on the upside. The supports come in much loser at 5825.
So far as lead indicators for the Markets goes, the RSI—Relative
Strength Index on the Daily Chart is 37.6473 and it has reached the lowest
value in last 14-days which is bearish. However, it does not show any bearish /
bullish divergence. The Daily MACD continues to trade below its signal line. On
the Weekly Charts, the RSI is 58.5188 and is neutral as it shows no failure
swing or any bullish or bearish divergence. The Weekly MACD has reported a
bearish crossover as it now trades below its signal line.
On the derivate front, NIFTY Futures have continued to add
short positions. The NIFTY February futures have added over 1.67 lakh shares or
1.31% in Open Interest which is a little positive sign.
All and all, the Markets are likely to continue to mildly
correct until it moves past the levels of 5850. So long as Markets do not move
past this level, this will continue to act as resistance with the support
coming in much lower at 5815 in form of its 100-DMA. It would be very critically
important for the Markets to move past the levels of 5850 in order to avoid
continuing weakness. Until this happens it is advised to remain light and very
selective in the Markets. Cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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