Nifty Outlook for 24th June 2010

Yesterday, on the daily charts, NIFTY made a Doji Candlestcik, signaling the presence of uncertainty in the markets. Till the second half of the trading session, markets were very range bound and only stock specific movements were observed. NIFTY opened down with around 20-25 points in negative and made a low of 5288.15 for the day. After taking the support of that level, NIFTY bounced back and made a high of 5333.30, which was led by the Realty Stocks and other Index Constituents. For the day, NIFTY closed at 5323.15, again proving a strong closing. US Federal Reserve is to take interest rate decision on Thursday night, which will also impact the markets tomorrow. Market expects the rates to be unchanged, but if the rates are being hiked, it may be taken as a positive indication towards the improvement of economic conditions of US.

A bit of profit booking is tomorrow, as it will be the last Thursday of the month (the F&O Expiry), but at the same time a good trading momentum will be observed in Sector Specific and other specific stocks. 5315 is the major resistance to be crossed by NIFTY to prove a real bull run in the markets. Closing above this level for continuous 2-3 trading sessions will support this view.

20-Days EMA (Exponential Moving Average) has crossed the 50-Days SMA (Simple Moving Average), giving a positive clue for short term. MACD (Moving Average Directional Index) and RSI (Relative Strength Index) have turned positive. 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 5366 / 5385 / 5400 levels. At the same time, 5295 / 5256 / 5230 will act as major intraday support levels.

What does Indicators Say?

1. RSI (14 Days & 9 Days): The values are 62.92 and 60.07, respectively.
2. MACD (26 Days & 12 Days): Their Values are 63.53 and 29.54, respectively. a positive crossover is indicated by both the Moving Averages.
3. +DI: 31.14, -DI: 20.00, ADX: 20.69: 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 5138.37 and 5179.69. 

Stocks in Focus:

DLF                     One may go long only if it trades above 292 for the targets of 297 & 298, with the Stop Loss of 288.

IBREALEST      One may go long only if it trades above 156 for the targets of 159 & 160, with the Stop Loss of 153.

MOSERBAER   One may go long only if it trades above 66 for the targets of 67.60 & 68, with the Stop Loss of 65.30.