Yesterday, on the daily charts, NIFTY made a White Candlestick. NIFTY had a flat opening and then slipped to 4967.05 (the days’ low), but in the second half of the trading session markets again gained and made a high of 5031.20. A sort of short covering was seen in the second half of the trading session, which also led the Index Constituents to Day’s high. Finally, NIFTY closed at 5019.85 for the day. Yesterday, NIFTY was also unable to cross its 20-Days EMA (Exponential Moving Average) of 5039.34 too, which if would have been crossed, had made it bullish for 2-3 trading sessions.
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 4931.55, which if breaches decisively will call for a Major Correction.
Now, the 50-Days SMA (Simple Moving Average) level is acting as strong resistance level for NIFTY. MACD (Moving Average Directional Index) is still giving SELL signal, while RSI (Relative Strength Index) is now turning in the positive zone. Traders may take delivery basis position in the stocks turning from their oversold territory and make smart gains, with a bounce in market, expected to come if NIFTY crosses its 20-Days SMA (Simple Moving Average) successfully.
For the day, intraday resistance for NIFTY comes at 5035 / 5055 / 5085 levels. At the same time, 4975 / 4948 / 4925 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 47.22 and 43.85, respectively.
- +DI: 20.45, -DI: 33.35, ADX: 29.51: 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:
BHARTIARTL Accumulate at 267-268 for the Target of 282 & 285, with the Stop Loss of 260.
MARUTI Accumulate only above 1288 for the Target of 1320, with the Stop Loss of 1252.
MOSERBAER Buy above 61 for the Target of 63.50 & 65.40, with the Stop Loss of 58.35.
TECHM