Yesterday, on the Daily Charts NIFTY made a Spinning Top Candlestick, which signifies the presence of uncertainty in the markets. NIFTY had a sluggish session throughout the day. Only TECH stocks and other sector specific movement were witnessed. For the day NIFTY made a high of 5481.90 (two and a half year high) led particularly by TECH Stocks. After the opening of European markets NIFTY dipped to the levels of 5428.40. Finally for the day, NIFTY closed at 5467.85.
A good trading momentum may be witnessed in the Tech and Textiles Stocks. Only Stock and Sector specific momentum will be observed as results season is running, but then too traders should follow a cautious approach by following Strict Stop Losses.
5330 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. 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 5480 / 5500 / 5520 levels. At the same time, 5450 / 5430 / 5415 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 62.58 and 59.73, respectively.
- +DI: 24.05, -DI: 13.52, ADX: 26.04: 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.
INDIACEM One may go for long, only if it trades above 105.80 for the target of 109, with Strict Stop Loss of 103.
ROLTA One may go for long, only if it trades above 176.30 for the target of 179.50, with Strict Stop Loss of 174.
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