Yesterday, on the Daily Charts NIFTY made a Doji Candlestick, which signals the presence of uncertainty in the markets, an equal fight between the buyers and sellers. Markets opened flattish with negative bias and traded very range bound 5252 and 5225 levels (only 25 to 30 points move) for the day. Some buying attraction was visible in the IT Stocks and Fertilizer Stocks only. In the second half of the trading session, after the opening of European Markets, a small selling pressure was visible which dragged it to the level of 5225.85. Finally, for the day NIFTY closed at 5235.85.
Markets may be a bit range bound tomorrow. A good trading momentum will be observed in Sector Specific and other specific stocks, but then too traders should follow a cautious approach by following Strict Stop Losses.
NIFTY again touched its 20-Days EMA of 5230.04, by making a low of 5225.85 for the day, but managed to close above it. 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 5255 / 5270 / 5282 levels. At the same time, 5215 / 5180 / 5160 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 52.17 and 55.88, respectively.
- +DI: 20.34, -DI: 18.29, ADX: 16.56: 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:
PATNALOONR One may go long only if it trades above 424 for the targets of 430 & 433, with tight Stop Loss of 420.
BHEL One may go short only if it trades below 2350 for the targets of 2330 & 2325, with tight Stop Loss of 2365.
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