MARKET TREND FOR TODAY
April 16, 2013
Yesterday’s session saw a modest recovery as the Markets
opened on a weaker note but gradually recovered in the second half of the session
to end the day with modest gains. The
Markets opened on a negative note on expected lines and 5500.30 in the early
minutes of the trade. The Markets made its lows as expected in our yesterday’s
edition of Daily Market Trend Guide. Post this making of low in the early
minutes, the Markets slowly crawled back into the green and remained in upward
rising channel as it went on to give the day’s high of 5592.85. The Markets
moved in a range in last two hours and finally ended the day at 5568.40,
posting a modest gain of 39.85 points or 0.72% while forming a higher to and
almost similar bottom on the Daily High Low Charts.
For today, expect the Markets to open on a flat to mildly
negative note and look for directions. There are chances that the Markets opens
flat to mildly negative and look for directions. As like yesterday, the
intraday trajectory would dominate the trend for today also and it would be
important to see if the Markets improves as we go ahead in the session or sees
some correction again.
For today, the levels of 5510 and 5590 shall act as
important supports for today. Resistance levels for today would be 5590 and 5615.
The RSI—Relative Strength Index on the Daily Chart is
40.4563 and it is neutral as it shows no negative divergence or failure swings.
The Daily MACD too is bearish as it continues to trade below its signal line.
On the derivative front, NIFTY Futures have once again went
on to add over 12.14 lakh shares or 6% in Open Interest. This signifies that there
has been fresh open positions that have been added.
Having said this, it would be important to see that the
massive amounts of shorts that have been added in the last week act as supports
near 5500 levels. There are chances that the Markets continues with its up move
but that would come with some amount of volatility ingrained in it.
All and all, there are chances that the Markets continues it
pullback again that we saw being started yesterday, but that would still
limited up to its 200-DMA levels. The attempt to trend reversal would be there
only if the Markets moves past the
levels of 200-DMA. Until this happens it would still remain in overall falling
channel even with the pullback within that. So, we continue to remain light on
the positions and tread the Markets with heavily selective and cautious
approach.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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