MARKET TREND FOR TODAY
April 01, 2013
The Markets had a very short and truncated week with two
holidays in between but the expiry day saw the Markets ending with sharp gains towards the end of the session after weak
opening. The Markets opened on a negative note following weak clues and gave
its intraday low of 5604.85 in the early minutes of the morning trade.
Thereafter, after making this initial low, the Markets remained in rising
intraday trajectory throughout the session. Markets kept gradually recovering
until afternoon session and in the last hour of the trade saw a sharp spurt as
it went on to give the intraday high of 5692.95 rising over 86-odd points from
the day’s low. It hovered a bit around those levels and finally ended the day
at 5682.55 posting a decent gain of 40.95 points or 0.73% making a higher top
and similar bottom on the Daily High Low Charts.
Today, expect a flat opening in the Markets. The Markets are
expected to open weak and continue to look for directional triggers with the
intraday trajectory remaining important. So far, the Markets have held on to
its all important support levels of 200-DMA which is 5627.45 today and it would
be important that the Markets do not breach these levels in case of some
weakness or consolidation again.
For today, the levels of 5725 and 5740 shall act as
immediate resistance on the Charts. The support come in at 5625 levels today.
The RSI—Relative Strength Index on the Daily Chart is
38.7852 and it is neutral as it shows no bullish or bearish divergences or any
kind of failure swings. The Daily MACD is bearish as it still continues to
trade below its signal line. On the Weekly Charts too, RSI is 46.5924 and it is
neutral as it shows no divergences or failure swings. The Weekly MACD remains
below its signal line and is bearish.
On the derivative front, NIFTY has reported 57% rollovers
and has added over 20 lakh shares in open interest. The NIFTY PCR is 0.98.
Having said this, there are no directional triggers for the
Markets and it may continue to drift in either direction for few sessions. On
the downside, as mentioned earlier, major and important support exists at 5627
in form of 200-DMA and it would be necessary that the Markets trades above
these levels and do not breach these levels in case of some momentary weakness
or some consolidation.
Overall, the Markets are likely to remain in a range with a
mild upward bias. However, again, with no directional or technical triggers, it
is equally likely that the Markets consolidates in a given range. In such case,
it is advised to remain very selective and light on the positions and keep
protecting profits wherever possible on either side. Overall neutral but
cautious outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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