MARKET TREND FOR TODAY
January 28, 2013
After persisting weakness for couple of days, the Markets
witnessed a welcome relief rally on Friday as it ended the day with decent
gains while remaining in positive trajectory for the entire session. The Markets opened on a moderately positive
note as expected and traded in a capped trading range in the morning trade. It
also momentarily dipped into the red to give the day’s low of 6014.45. However,
it soon transformed itself into rising trajectory and kept moving up gradually
through out the rest of the session. Towards the end, it gave its day’s high of
6080.55. It maintained those levels until the end of the session and finally
ended the day at 6074.65, posting a decent gain of 55.30 or 0.92%, while
forming a higher top and similar bottom on the Daily High Low Charts.
Today, expect the Markets to open on a moderately positive
note again and continue with its up move that we witnessed on Friday, at least
in the initial trade. Today, we can see some continuation in the pullback that
we saw after couple of days of weakness but intraday trajectory would continue
to dominate the trend for today. Further, we enter the expiry week for the
current derivative series and the trade is likely to remain dominated with
rollover centric activities.
For today, the levels of 6094 and 6125 shall act as
resistance and the supports come in much lower at 6030 and 5980.
The RSI—Relative Strength Index on the Daily Chart is
61.5848 and it is neutral as it shows no failure swings or bullish or bearish
divergence. The Daily MACD continues to remain bearish as it trades below its
signal line. On the Weekly Charts, the RSI is 69.6242 and though it does not
show any failure swings but the NIFTY has set a new 14-week high but RSI has
not and this is Bearish Divergence or weekly charts.
The NIFTY futures has
added net OI which is a positive sign for the Markets.
Given this reading on Daily and Weekly Charts, we may see
some short term rally if the Markets moves past 6095 levels. However, little
correction cannot be ruled out in this week as per the reading on the Weekly
Charts.
All and all, short term upward momentum can continue and
selective out performance can be seen. Selective purchases can be continued to
be made. Overall, though some consolidation / minor correction cannot be ruled
out at later stage at bit higher levels again, the overall trend and undercurrent
continues to remain intact. Positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331