Yesterday, on the daily charts, NIFTY made a White Opening Marubozu Candlestick. It was a typical bull day and strength of the bulls is enough to cause some concern among the bears. NIFTY had a gap up opening of about 60 points due to strong global cues. NIFTY was positive for whole of the day, due to F&O Expiry on the next day. Majority of the Nifty Constituents gained today, led by HINDALCO, SAIL, JSWSTEEL. For the day, NIFTY made a high of 4925.45 and closed at 4917.40. Same type of volatility is expected to be there on Thursday’s Trading session with some bullish ride in some of the major trading stocks.
Now, if for next 2-3 trading sessions if NIFTY closes below 4785, it may drag till the levels of 4725 or 4700. On the Weekly Charts too, NIFTY has breached its important support of its 40-Days EMA of 4914.35, which may 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 4950 / 4975 / 5015 levels. At the same time, 4880 / 4850 / 4825 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 38.97 and 36.86, respectively.
- +DI: 14.47, -DI: 39.17, ADX: 32.82: 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:
GLAXO Sell below 2000 for the Target of 1960, with the Stop Loss of 2020.
MPHASIS Sell below 611 for the Target of 600 & 595, with the Stop Loss of 620.
CROMPGREAV Buy above 235 for the Target of 240 & 242, with the Stop Loss of 230.
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