MARKET TREND FOR TODAY
May 23.2013
What seemed as a stable and quietly positive session for the
Markets turned out otherwise as the Markets fizzled out in the last hour and
half of the trade to end the day with modest losses as it continued with its
corrective activities, quite on expected lines. The Markets opened on a flat to
moderately positive note and gave its intraday high of 6147.60 in the very
early minutes of the trade. Thereafter,
for the most part of the session, it moved sidewards in a very narrow 25-odd
points range. However, in the last hour and half of the trade, the Markets saw
weakness creeping in again. It not only dipped into the red but went on to give
the day’s low of 6074.45. It saw a very mild recovery towards expiry of the
session and finally ended the day at 6094.50, posting a modest loss of 19.60
points or 0.32% while continuing to form a lower top and lower bottom on the
Daily High Low Charts.
Today’s analysis remains more or less on the similar lines
again. The Markets have again closed very near to its pattern support and
today’s opening would be very crucial to decide the trend for today as well as
for immediate short term. Expect the markets to open on a lower note and look
for directions. If the Markets open below the pattern supports of 6095, this
level would act as intraday resistance for the rest of the day.
For today, the levels of 6125 and 6160 shall act as
immediate resistance for the Markets. The supports still come in much lower at
6045 and 6010 levels.
The lead indicators too paint a similar story. The
RSI—Relative Strength Index on the Daily Chart is 59.2186 and it is neutral as
it shows no bullish or bearish divergence or any failure swings. The MACD too
trades above its signal line, but continues to move very slowly towards
negative crossover.
On the derivative front, the NIFTY May futures have added
over 6.28 lakh shares or 2.42% in the Open Interest. This shows that there are
some amounts of shorts that are being built up in the system.
Overall, today’s opening of the Markets is all set to decide
the trend for today as well as for immediate short term. The level of 6095 is a
good enough pattern support and any opening or drifting of the Markets below that
level will see some more weakness creeping in. There are all chances of the
correction continuing as there are no triggers on the upside and the pattern
analysis point towards continuing weakness / corrective activities.
All and all, we continue to advice to approach the Markets
with cautious outlook. Though there are no downward triggers, there are no
triggers for the upside as well. In view of this, and after such a stupendous
up move, the Markets usually correct. However, as mentioned in our yesterday’s
edition, certain defensive sectors may out perform and this may prevent the
Markets from correcting sharply but the undertone certainly remains tired and
weary. While continuing a very selective approach in the Markets, cautious
outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.