MARKET TREND FOR TODAY
April 13, 2012
Markets ended the day yesterday with gains
though it traded in a capped range but kept the underlying strength intact. The
Markets opened on a positive note as expected and traded in the upper band of
30-odd points. Post opening in the green, the Markets gave its intraday high of
5290.60 in the early afternoon trade and spent the rest of the session in a
capped range. It pared some of its gains in the afternoon, but again recovered
and finally managed to end the day at 5276.85, posting decent gain of 50 points
or 0.96%. In the process, it has formed a higher top and higher bottom on the
Daily High Low charts.
Today’s session would important for the
Markets as we are expected to see a
decently positive opening in the Markets following strong technicals and
favourable global cues. However, with the levels of opening expected, the
Markets shall open near its one of the resistance levels and thus, it would be
critically important for the Markets to see if it capitalizes on the strong
opening and maintains its gains. For this, the intraday trajectory that it
forms would continue to remain critically important.
For today, the levels of 5338, which is
50-DMA for the Markets and also a pattern resistance in form of a falling trend
line would act as resistance and the levels of 5240 and 5205 shall act as
immediate supports.
The RSI—Relative Strength Index on the
Daily Chart is 49.4903 and it is neutral as it shows no negative divergence or
failure swings. The Daily MACD still is bearish as it trades below its signal
line, but likely to see a positive crossover if Markets continues with its up
move.
Having said this, both NIFTY and Stock
Futures have continued to add Open Interest. The NIFTY PCR stands as 1.17 as
against 1.14.
Overall, as mentioned in previous editions
of Daily Market Trend Guide, there has been no structural breach on the Charts
and overall, the Markets are likely to continue with their up move as under
current remains buoyant. However, for a sustainable up move to occur, the Markets
will have to move past 5350 – 5410 levels and until this happens, the Markets
will remain in broad trading range and thus make see volatile and range bound
movements.
All and all, with trend remaining intact,
it is strongly advised to avoid shorts even if some profit booking is seen as
Markets remains in a broad trading range. Stock specific purchases may be made
and profits should be continued to be vigilantly protected. Overall, positive
outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
