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"Market Trend for Today" is reproduced below in text format.
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MARKET TREND FOR TODAY
The Markets spent the entire session on Friday in a capped range and consolidated at the close levels as it ended the day at 5995.45, losing negligible 3.60 points or 0.06% while continuing to form a lower top and lower bottom on the Daily High Charts.
Today, we can fairly expect a stable and modestly positive opening in the Markets and expect stability in the Markets, at least in the initial session. However, the Markets have closed a notch below its 50- DMA and this level would act as an minor resistance on the way up.
For today, the levels of 6045 and 6070 would act as immediate resistance on the Daily Chars. Going by the pattern analysis, the levels of 5950 and 5930 offer a strong and important support for the Markets.
The lead indicators continue to remain in place. The RSI--Relative Strength Index on the Daily Charts is 42.74 and it does not show any failure swings. The NIFTY has made a new 14-period low but RSI has not and this is bullish divergence. The Daily MACD continues to trade below its signal line.
On the derivative front, NIFTY November futures have shown a marginal decline of 0.81% in open interest. This is negligilbe and of very little or no significance at all as we enter into rollover week.
If we go by short term pattern analysis, the 100-DMA has given a positive rollover as it has cut the 200DMA from below. This signifies that the Markets are consolidating in the short term with a positive bias. The sooner the Markets moves past 50-DMA levels, better would be the chances of the Markets to resume its up move.
All and all, there has been no structural beach by the Markets on the Daily Charts and it is very less less likely that Markets see any major downside from current levels baring some range bound consolidation. Given this positions on the Daily Charts, any downside should be used to make selective purchases as stock specif action would be seen and sectoral out performance would be seen. However over exposures and shorts should be avoided until the directional bias is clear. Positive outlook with mild caution is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
MyMoneyPlant.co.in
MARKET TREND FOR TODAY
The Markets spent the entire session on Friday in a capped range and consolidated at the close levels as it ended the day at 5995.45, losing negligible 3.60 points or 0.06% while continuing to form a lower top and lower bottom on the Daily High Charts.
Today, we can fairly expect a stable and modestly positive opening in the Markets and expect stability in the Markets, at least in the initial session. However, the Markets have closed a notch below its 50- DMA and this level would act as an minor resistance on the way up.
For today, the levels of 6045 and 6070 would act as immediate resistance on the Daily Chars. Going by the pattern analysis, the levels of 5950 and 5930 offer a strong and important support for the Markets.
The lead indicators continue to remain in place. The RSI--Relative Strength Index on the Daily Charts is 42.74 and it does not show any failure swings. The NIFTY has made a new 14-period low but RSI has not and this is bullish divergence. The Daily MACD continues to trade below its signal line.
On the derivative front, NIFTY November futures have shown a marginal decline of 0.81% in open interest. This is negligilbe and of very little or no significance at all as we enter into rollover week.
If we go by short term pattern analysis, the 100-DMA has given a positive rollover as it has cut the 200DMA from below. This signifies that the Markets are consolidating in the short term with a positive bias. The sooner the Markets moves past 50-DMA levels, better would be the chances of the Markets to resume its up move.
All and all, there has been no structural beach by the Markets on the Daily Charts and it is very less less likely that Markets see any major downside from current levels baring some range bound consolidation. Given this positions on the Daily Charts, any downside should be used to make selective purchases as stock specif action would be seen and sectoral out performance would be seen. However over exposures and shorts should be avoided until the directional bias is clear. Positive outlook with mild caution is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
MyMoneyPlant.co.in
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