MARKET TREND FOR TODAY
April 29, 2013
The session on Friday remained perfectly as expected as the
Markets saw some much expected correction as it opened on a negative note,
remained negative throughout the session and ended the day with losses after
string of gains. The Markets opened on a negative note the Markets remained in
downward falling channel in the first half of the session as it gradually
continued to drift. In the second half, the Markets made a weak attempt to
recover from its lows as it tried to recoup some of its gains. However, it did
not sustain those recouped losses as it drifted again and this time, went on to
give the day’s low of 5860.50. It continued to trade around these levels and
did not make any major recovery. It finally ended the day at 5871.45, posting a
net loss of 44.85 points or 0.76% while forming a lower top and slightly higher
bottom on the Daily High Low charts.
The analysis for today would remain more or less similar to
that of Friday. The Markets have shown signs of much required correction
setting in. For today, the Markets are expected to open on a flat note and look
for directions. Most likely, it would continue to remain in consolidation / corrective
mode. Intraday trajectory would continue to remain very important today.
For today, the levels of 5900 and 5930 shall continue to act
as immediate resistance levels and the levels of 5830 and 5790 shall act as
immediate supports.
The lead indicators continue to remain neutral. The RSI—Relative
Strength Index on the Daily Chart is 61.3191 and it is neutral as it shows no bullish
or bearish divergence or failure swings. The Daily MACD is bullish as it trades
above its signal line. On the Weekly Charts too the RSI is 55.0330 and it is
neutral as it shows no bullish or bearish divergence and shows no failure
swings. The Weekly MACD is bearish as it trades below its signal line.
On the derivative front, NIFTY May futures have added over
7.97 lakh shares or 5.31% in Open
Interest. The NIFTY PCR stands unchanged at 1.05.
The overall reading is that the Markets are expected to
remain in a broad trading range. It can see consolidation or even continue to
see minor correction from these levels. The levels of 5925 would now be
important. The Markets will have to move past these levels to continue with its
up move.
All and all, as mentioned above, possibilities continue to exist
for the Markets to continue to remain in consolidation / corrective mode. The
levels of 5925 would be important to watch out for and fresh sustainable up
move shall occur only above these levels. Until this happens, we will continue
to see the Markets trade in a broad range and consolidate. With chances of
minor profit taking continue to exist, volatility can be seen. Cautious outlook
is continued to be advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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