MARKET TREND FOR TODAY
February 21, 2013
The Markets had a little disappointing session amid lower
volumes as it chose to consolidate as it pared all of its opening gains to end
the day flat with negligible gains. The Markets opened little stronger on a
positive note and gave its intraday high of 5971 in the early minutes of the
trade. The Markets hovered above its pattern resistance of 5950 for the most
part of the trading day but later slipped below that to trade flat. It
continued to trade around its previous Close, heading nowhere again and finally
ended the day absolutely flat at 5943.05, posting a negligible gain of 3.35
points or 0.06% though it formed a higher top and higher bottom on the Daily
High Low charts. The pattern resistance of 5950 and it’s the 50-DMA of 5962.15
have currently held out as resistance for the Markets.
Today, the Markets shall open lower in line with the prevailing
weakness in global Markets. Therefore with the opening below the 5950 levels,
these levels will continue to act as a pattern resistance for the markets. The
intraday trajectory would be crucial to
decide the trend for the today.
For today, the levels of 5950 and 5962 shall continue to act
as immediate resistance for the Markets. Supports come in near 5850-5835 levels
on the downside. However, this will still keep the Markets in a broad trading
range.
The lead indicators more or less paint a neutral picture
with no directional triggers. The RSI—Relative Strength Index on the Daily
Chart is 48.1568 is neutral as it shows no bullish or bearish divergence or any
failure swings. The Daily MACD continues to trade below its signal line.
On the derivative front, NIFTY Futures have continued to add
over 2.13 lakh shares or 1.35% in Open Interest. This certainly remains
positive as it indicates that there was no unwinding reported while the Markets
pared its gains. Shorts were though added.
The Markets have again added shorts while it pared its gains
yesterday. It still continues to trade in 120-odd points trading range of
5835-5970 and there has been no breakdown still on Charts. However, the
immediate resistance would be the levels of 5950 and 5932.15 at Close which is
the 50-DMA of the Markets.
All and all, until the Markets moves past these levels, we
will continue to see such volatile and bidirectional movements in the Markets
with volatility ingrained in it. As we have mentioned in our previous editions,
the Markets will have to move past these levels for sustainable up move. There
are chances due to shorts that exists in system that we may see some
improvement as we go ahead in the session later. Shorts should be avoided and
any impending weakness should be used in making selective buying as selective
out performance would be seen. Overall, cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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