Nifty Outlook for 15th July 2010

Yesterday, on the Daily Charts NIFTY made High Wave Candlestick with negative bias, which indicates that the Bears had a winning situation, after NIFTY opened strongly, breaking all its important resistances and making a high of 5453.45. The market slide continuously for whole of the trading session, and made a low of 5371.70. a good selling pressure was witnessed in all the Metal stocks, and all the frontline stocks. Finally, for the day, it closed at 5386.15.

A bit of trading momentum can be seen in the financial and tech stocks, as the results of JP Morgan Chase, Google & AMD will be announced in US (late in the evening) and the results of Bank of America & Citigroup are to be announced the other day.

A good trading momentum will be observed in Sector Specific and other specific stocks, as results season has arrived, but then too traders should follow a cautious approach by following Strict Stop Losses. 5230 is the major Support which has to be breached to prove the weakness, and unless the NIFTY is trading above this level, the Markets are positive. If NIFTY closes above 5400 levels, for continuously two-three trading sessions, it may touch the levels of 5430 and 5450 in coming days.

20-Days EMA (Exponential Moving Average) has crossed the 50-Days SMA (Simple Moving Average), supporting the recent positive move. 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 5415 / 5430 / 5445 levels. At the same time, 5380 / 5355 / 5330 will act as major intraday support levels.

What does Indicators Say?

1. RSI (14 Days & 9 Days): The values are 61.29 and 59.01, respectively.
2. MACD (26 Days & 12 Days): Their Values are 54.71 and 45.30, respectively. a positive crossover is indicated by both the Moving Averages.
3. +DI: 29.58, -DI: 11.50, ADX: 21.84: 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 5156.42 and 5288.15.

Stocks in Focus:

LUPIN                         One may go short only if it trades below 1860 for the targets of 1840 & 1830, with tight Stop Loss of 1870.

RAJESEXPO              

One may go long at the levels of 85.80-86 for the targets of 94 & 96 in next 10-15 days, with tight Stop Loss of 81.50.