Yesterday, NIFTY made a Doji Candlestick, with a longer lower shadow, representing the presence of uncertainty in the markets. NIFTY had a positive opening with the positive bias of almost 25-30 points. A very sluggish session was witnessed, only some of the sectors like CEMENT, FERITLIZER, BANKING, TYRE and IT had a good run up, which took the NIFTY to the day’s high of 6182.50, gaining almost 45-50 points for the day. After touching the day’s high markets witnessed a very sticky till the last half an hour of trade. In the last half an hour of trading session, NIFTY made a low of 6118.30 and again bounced back to end the day at the levels of 6160.50. Currently, the level of 6000 is acting as a very important support level for NIFTY.
Purely Stock Specific and Sector Specific actions will be witnessed now as the Results Season has begun. ENGINEERSIN, ICSA, JUBLFOOD and VIDEOIND will be announcing their results today. On the Global front, Alcatel Lucent and Alstom S.A. are going to announce their Quarterly Results in France; Unilever PLC is going to announce its Quarterly Results in UK. Morgan Stanley is going to announce its Quarterly Results in UK.
Purchasing Manager Index Services for the month of October, Producer Price Index for the month of September will be announced by European Monetary Union, apart from this ECB (European Central Bank) will be coming out with the Interest Rate Decision. Purchasing Managers Index Services for the month of October will be declared in Germany.
NIFTY opened above its 20-Days EMA (Exponential Moving Average) of 6066.67 at 6150.60. 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 6190 / 6220 / 6250 levels. At the same time, 6120 / 6095 / 6065 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 59.74 and 55.71, respectively.
- MACD (26 Days & 12 Days): Their Values are 40.25 and 44.78, respectively. a positive crossover is indicated by both the Moving Averages.
- +DI: 28.88, -DI: 20.82, ADX: 24.11: 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 5912.47 and 6066.67.
Pre - Market Calls:
EXIDEIND Buy only if it trades above 163 for the Targets of 166 & 168, with the strict Stop Loss of 161.50.
BGRENERGY Buy at the levels of 809-810 for the Targets of 825 & 830, with the strict Stop Loss of 796.
VOLTAS Buy only if it trades above 253 for the Targets of 258 & 260, with the strict Stop Loss of 248.
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