Nifty Outlook for 17th June 2010

Yesterday, on the daily charts, NIFTY tried to touch the marked resistance line of 5260 by making a high of 5255.65 for the day, but couldn’t cross it. For whole of the trading session it traded range bound for almost 30 to 40 points. In the second half of the session, it again took the support of 5215 and bounced back to 5250. The trading session was very well supportive for the Swing Traders. Finally, for the day NIFTY closed at 5233.35, again making a close above its previous day’s close of 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 5255 / 5295 / 5310 levels. At the same time, 5215 / 5185 / 5165 will act as major intraday support levels.

What does Indicators Say?

1. RSI (14 Days & 9 Days): The values are 59.97 and 53.97, respectively.
2. MACD (26 Days & 12 Days): Their Values are 21.56 and -12.26, respectively. a positive crossover is indicated by both the Moving Averages.
3. +DI: 30.62, -DI: 24.01, ADX: 19.93: 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 5141.83 and 5095.71. 

Stocks in Focus:

ICICIBANK                One may go long only above 880 for the target of 892, with the Stop Loss of 869.

FEDERALBNK          One may go short only below 320 for the target of 316 & 312, with the Stop Loss of 326.