Nifty Outlook for 15th June 2010

Yesterday, on the daily charts, NIFTY made a White Opening Marubozu Candlestick, signaling that it was a typical bull day and strength of the bulls is enough to cause some concern among the bears. NIFTY had a positive opening of about 40 to 50 points with strong positive global cues. Markets made a low of 5120.15 after the announcement of Monthly Inflation Data, which was (10.16% Vs 9.59% on monthly basis), but in the second half of the trading session, the rally was led by the ADAG Group stocks, which led the NIFTY to 5200 levels, by making a high of 5201.25. Finally, for the day NIFTY closed at 5197.70. For the next day, markets seem to be positive, which may help investors to earn good intraday gains.

The 50-Days SMA (Simple Moving Average), which acted as a strong resistance level since last week, was crossed yesterday by NIFTY. MACD (Moving Average Directional Index) and RSI (Relative Strength Index) are 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 5215 / 5240 / 5278 levels. At the same time, 5165 / 5140 / 5115 will act as major intraday support levels.

What does Indicators Say?

1. RSI (14 Days & 9 Days): The values are 58.07 and 50.74, respectively.
2. MACD (26 Days & 12 Days): Their Values are -0.74 and -25.63, respectively. a positive crossover is indicated by both the Moving Averages.
3. +DI: 28.55, -DI: 25.63, ADX: 21.44: 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.
4. SMA (50 Days) & EMA (20 Days): The values of these two indicators are 5147.40 and 5066.37. Both the Moving Averages are now acting as Strong Resistance levels for NIFTY.

Stocks in Focus:

BEL                            One may go long only above 1772 for the target of 1805 & 1810, with the Stop Loss of 1750.

RELCAPITAL             One may go long only above 725 for the target of 740 & 742, with the Stop Loss of 715.

CROMPGREAV        One may go long only above 250 for the target of 253 & 255, with the Stop Loss of 247.

TECHM                     One may go long at the levels of 745-746 for the target of 765 & 770, with the Stop Loss of 720.