Nifty Outlook for 03 May 2010

Yesterday, on the daily charts, NIFTY made a Small White Candlestick. NIFTY opened flat in green, made a high of 5294.80, after breaking the Intraday Support of 5285 and finally closed at 5278.00. Markets gained a bit, but most of the Heavyweights and highly traded stocks were in Red. On Friday, US announced its Q1 GDP Numbers, which were in line with market expectations, but at the same time US Government has decided to file Criminal Case against Goldman Sachs, which gave a blow to the US Markets, hence a bit of negativity is expected in Indian Markets too.

NIFTY was successful in breaking its 20-Days EMA of 5266.80, which was acting as a good Resistance Level for it. But, if a look at indicators is taken, both RSI (Relative Strength Index) and MACD (Moving Average Directional Index), are giving SELL signal along with the rising volumes, hence traders are suggested to trade cautiously by following Strict Stop Losses and avoid making fresh investments at this point of time.

For the day, intraday resistance for NIFTY comes at 5285 / 5314 / 5330 levels. At the same time, 5220 / 5185 / 5160 will act as major intraday support levels.

What Does Indicators Say?

1. RSI (14 Days & 9 Days): The values are 52.92 and 53.45, respectively.
2. MACD (26 Days & 12 Days): Their Values are 18.70 and 28.06, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 20.84, -DI: 23.29, ADX: 21.50: The Positive Directional Index has gained strength over the Negative Directional Index and also the Average Directional Index is now above 20, indicating strength in the current trend.
4. SMA (50 Days) & EMA (20 Days): The values of these two indicators are 5170.11 and 5266.80. 20-Days EMA is now acting as the resistance level for the NIFTY, whereas 50-Days SMA is in positive territory, as EMA has moved above the SMA.
   

Stocks in Focus:

BEML             Buy above 1055 with the Stop Loss of 1045 for the Target of 1070.

EKC                Buy above 122 with the Stop Loss of 120 for the Target of 125 & 126.