MARKET TREND FOR TODAY
April 02, 2013
The Markets had a quiet session yesterday wherein it
consolidated on expected lines and ended the day with moderate gains. The
Markets opened on a positive note and gave its intraday high of 5720.95 in the
early morning trade. However, post this, the Markets gradually came off its
opening highs by afternoon trade and dipped moderately into the red giving the
day’s low of 5675.90. However, the Markets attempted to recover again in the
second half of the session and went back into the positive territory again. It
finally ended the day at 5704.40 posting a moderate gain of 21.85 points or
0.38% forming a higher top and higher bottom on the Daily High Low Charts.
Today’s analysis would be more or less on similar lines like
that of yesterday. The Markets are expected to open on flat note again today
and trade in a capped range. Some consolidation would continue and therefore
the intraday trajectory would continue to remain important. It would be
important for the Markets to maintain levels above its 200 DMA as we mentioned
yesterday to avoid any further weakness.
For today, the levels of 5725 and 5740 would act as
immediate resistance for the Markets.
The supports come in at 5640 and 5625 levels.
The lead indicators do not give any directional triggers.
The RSI—Relative Strength Index on the Daily Chart is 41.4368 and it is neutral
as it shows no bullish or bearish divergences. The Daily MACD has still
continued to trade below its signal line.
On the derivative front, the NIFTY April Futures have added
over 9.46 lakh shares or 8.48% in total Open Interest. This is a positive
factor and the NIFTY PCR stands at 0.97 as against 0.98.
Having said this, the it can be concluded that the Markets
still continues to trade without any directional triggers and therefore it is
very much likely that such range bound directionless sessions may continue.
However, so long as the Markets maintains the levels above its 200-DMA which is
5630 today, we will just have range bound consolidation and nothing more.
Weakness shall creep in only if this levels are breached on the downside.
All and all, with the range bound movement likely to
continue, it is advised to remain very stock specific while creating fresh
positions. Shorts should be avoided as there is no technical breach on the
charts as of now. While remaining selective with fresh positions, profits too
should be protected at any levels. Overall, very light positions with cautious
approach is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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