Yesterday, on the daily charts, NIFTY made a Small White Candlestick, proving the strength lying within. Since last three trading sessions, NIFTY has been continuously closing above its previous day’s close, hence inviting bulls in the market. Till the first half of the trading session, a very range bound movement was observed only of about 10 to 15 points. In the second half of trading session, a bit of selling pressure was seen, which dragged NIFTY till the levels of 5171.05 as European shares lost ground due to the downgrading of Greece by Moody's ratings agency last night. But immediately, after taking the support of 5165, it again bounced back and made a high of 5231.45 for the day. Finally, for the day NIFTY closed at 5222.35.
MACD (Moving Average Directional Index) and RSI (Relative Strength Index) are now turning in the positive zone from the oversold zones. As long as NIFTY closes above 5175 levels, it may prove this rally to be a true one and the news based one. Traders may take delivery basis position in the stocks turning from their oversold territory and make smart gains.
For the day, intraday resistance for NIFTY comes at 5235 / 5260 / 5295 levels. At the same time, 5175 / 5140 / 5115 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 59.38 and 52.47, respectively.
- +DI: 29.60, -DI: 24.86, ADX: 20.53: 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:
JSWSTEEL One may go long only above 1070 for the targets of 1088 & 1090, with the Stop Loss of 1056.
SUZLON One may go long only above 57.70 for the targets of 59 & 61.50, with the Stop Loss of 54.40.
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