Yesterday, NIFTY made a Doji Candlestick, with a longer lower shadow, representing the presence of uncertainty in the markets. NIFTY had a quiet opening with 7-14 points in the positive bias. A very sluggish session was witnessed before the announcement of Credit Policy by RBI (Reserve Bank of India). It raised interest rates for the sixth time this year, with lending and borrowing rates going up by 25 basis points each. It also told mortgage firms to limit loans to 80 percent of the asset value, and asked lenders to raise provisions for home loans over 7.5 million rupees to 125 percent of the loan value, from 100 percent now. With the announcement of this loan rules tightening, a good selling pressure was witnessed in the REALTY & HOUSING FINANCE Stocks. BANKING, CEMENT, SUGAR & FERTLIZER Sectors had a good run up for the day. For the day, NIFTY made a high of 6138.10, whereas a low of 6036.05. Currently, the level of 6000 is acting as a very important support level for NIFTY. For the day, NIFTY closed at 6119.00.
Purely Stock Specific and Sector Specific actions will be witnessed now as the Results Season has begun. AUROPHARMA, CESC, GAIL, MCLEODRUSS and MTNL will be announcing their results today. On the Global front, Societe Generale is going to announce its Quarterly Results in France; Time Warner is going to announce its Quarterly Results in US. Apart from this, Ford Motor Company is going to announce its October Sales Numbers in US.
Japanese Markets will be witnessing holiday on account of Culture Day tomorrow, Purchasing Manager Index Services for the month of October will be announced in UK, Factory Orders for the month of September, ADP Employment Change for the month of October, ISM Non-Manufacturing for the month of October, and Total Vehicle Sales for the month of October will be announced in US. Fed Interest rate Decision will also be announced in US.
NIFTY opened above its 20-Days EMA (Exponential Moving Average) of 6056.80 at 6127.55 and made a low of 6036.05 for the day. Still the 20-Days EMA has maintained above the 50-Days SMA (Simple Moving Average), still supporting the recent positive move. The next support level lies at 5920.
MACD (Moving Average Convergence Divergence) has also maintained the positive trend. But at the same time, RSI (Relative Strength Index) reverted from the overbought zone. Traders are suggested to trade cautiously in the markets, as markets have surpassed all the major resistances and have entered in the Over Bought Zone.
For the day, intraday resistance for NIFTY comes at 6150 / 6190 / 6220 levels. At the same time, 6100 / 6080 / 6050 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 57.07 and 54.70, respectively.
- MACD (26 Days & 12 Days): Their Values are 35.71 and 47.97, respectively. a positive crossover is indicated by both the Moving Averages.
- +DI: 25.08, -DI: 24.66, ADX: 24.08: The Positive Directional Index has gained strength over the Negative Directional Index and also the Average Directional Index is above 20, indicating the development of strength in the current trend.
- SMA (50 Days) & EMA (20 Days): The values of these two indicators are 5899.36 and 6056.80.
Pre - Market Calls:
CORPBANK Buy at the levels of 787-788 for the Targets of 805 & 808, with the strict Stop Loss of 775.
INDHOTEL Buy at the levels of 103-104 for the Targets of 106 & 107, with the strict Stop Loss of 101.
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