Yesterday, on the daily charts, NIFTY made a Doji Candlestick, which shows the presence of high degree of uncertainty in the markets between the Buyers and the Sellers. It was like a tug of war between the two parties. Markets opened strong by posting the gains of around 70 to 80 points. But in the latter half of the trading session, NIFTY shredded off its day’s gains and made a low of 4923.45 and managed to close at 4943.95 levels. Only the ADAG Group led the rally, due to agreement between both the Ambani Brothers on cancelling all non-compete agreements.
On the Weekly Charts too, NIFTY is signaling a cautious approach towards the markets in coming days, as it is taking strong support at 40-Days EMA of 4921.05, which if breaches decisively will call for a Major Correction.
Both the 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) levels are acting as strong resistance levels for NIFTY. 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 4990 / 5025 / 5060 levels. At the same time, 4910 / 4875 / 4845 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 35.70 and 38.17, respectively.
- +DI: 18.00, -DI: 37.11, ADX: 30.71: The Negative Directional Index has gained strength over the Positive Directional Index and also the Average Directional Index is now above 20, indicating strength in the current trend.
Stocks in Focus:
BAJAJ-AUTO Sell below 2030 for the Target of 2000, with the Stop Loss of 2045.
VIDEOIND Buy above 210 for the Target of 218, with the Stop Loss of 204.
BALRAMCHIN Buy above 77 for the Target of 82.50, with the Stop Loss of 74.60.
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