Thursday, March 28, 2013

Daily Market Trend Guide -- Thursday, March 28, 2013

MARKET TREND FOR TODAY                                                                 March 28, 2013
There was a trading holiday yesterday on occasion of Holi. On Tuesday, the Markets had a absolutely flat session as it spent the entire session trading in a range and it headed nowhere and finally ended thee day with nominal gains. The Markets opened on a moderately negative note and gave its intraday low of 5612.05 in the very early minutes of the trade. However, it then crawled back into the green and thereafter spent the entire session in a very narrow and capped range of 20-odd points as it gave its intraday high of 5655.30. The Markets moved sidewards in the entire session as it had no directional trigger and finally ended the day at 5641.60, posting a nominal gain of 7.75 points or 0.14% forming a lower top and lower bottom on the Daily High Low Charts.


The Markets have, so far, held on to its all important support levels of 200-DMA at Close levels and therefore, there is no technical breach as of now. The Markets are expected to open flat and today being the expiry day of the current March series, the session is likely to remain dominated with rollover centric activities. So long as the Markets remaining above its 200-DMA at Close levels, there would be no negative breach on the Charts.

For today, the levels of 200-DMA of 5624 would be the important support level to watch for. Another supports comes at 5610.

The RSI—Relative Strength Index on the Daily Chart is 33.5493 and it shows no negative divergence or failure swings. The Daily MACD continues to trade below its signal line. 

On the derivative front, heavy rollovers were witnessed on Tuesday. Today, the activity is expected to be intense as yesterday was a trading holiday. However, there is been no major offloading that was observed.

Having said this, as mentioned earlier, so long as Markets maintain levels above of its 200-DMA at close levels, there are chances that it may rebound from these levels. However, any breach below this would make the Markets temporarily weak in the immediate short term. 

All and all, the Markets have been lacking directional triggers in the past couple of  sessions and therefore, we have been witnessing directionless movements. However, the chances of revival can be seen if the Markets do not breach the important support of 200-DMA on the downside. However, in absence of any confirmation, no aggressive buying should be done and it is advised to remain light on the positions. Continuation of cautious outlook is advised for today.

Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331


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