On Friday, NIFTY made a Long Black Candlestick, gaping down from the previous day’s Candle. A quiet opening with the negative bias 25-30 points was witnessed. NIFTY traded very range bound and sluggishly till the announcement of September IIP (Index of Industrial Production), which grew by 4.4% as compared to 8.2% in the previous year. With the announcement of the disappointing data, negative news in China also flared up the selling pressure all over the globe. The Day proved to be a Black Friday for the markets all over the globe. China set new rules that prohibit foreign companies from buying property there, other than offices for their own use. The rules will also limit foreigners living in China to the purchase of one residential unit for their own use. Fears were also there, that China may raise interest rates to cool inflation. Stocks dipped from day’s High to day’s Low, with NIFTY dipping almost 120 points. At the time of opening only NIFTY made a high of 6202.50, but after kissing the day’s high, selling pressure crept into the market and NIFTY dipped to the day’s low of 6056.75.
Net Selling of Rs. 782.27 Crore in Cash Segment and of Rs. 320.58 Crore in F&O Segment by FIIs was witnessed on Friday's Trading Session.
In F&O Segment Net Selling of Rs. 1543.59 Crore in Index Futures, Rs. 466.20 Crore in Stock Futures and Rs. 35.86 Crore in Stock Options was witnessed, whereas Net Buying of Rs. 1725.07 Crore was witnessed in Index Options.
NIFTY NOV FUTURE premium reduced from 42.75 to 19.35 points on Friday.
Purely Stock Specific and Sector Specific actions will be witnessed now as the Results Season has begun. RENUKA and SATYAMCOMP will be announcing their results today.
BoJ (Bank of Japan) Monetary Policy Meeting, Industrial Production, Tertiary Industry Index and Capacity Utilization for the month of September will be announced in Japan. China will be coming out with its M2 Money Supply for the month of October, Trade Balance for the month of September will be announced in European Monetary Union. NY Empire State Manufacturing Index for the month of November, Retail sales for the month of October and Business Inventories for the month of September will be announced in US.
NIFTY breached its 20-Days EMA (Exponential Moving Average) of 6149.61, by making a low of 6056.75 and is now about to test the 50-Days SMA (Simple Moving Average) of 6024.18. Both the moving averages are still supporting the recent positive move. NIFTY is not able to maintain above the levels of 6300 very well, which creates some doubtful situation in its further upside move, whereas the next support level lies at 5950.
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 6080 / 6120 / 6150 levels. At the same time, 6040 / 6015 / 5985 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 46.70 and 57.84, respectively, showing a negative crossover.
- MACD (26 Days & 12 Days): Their Values are 55.90 and 60.54, respectively. a negative crossover is indicated by both the Moving Averages.
- +DI: 25.17, -DI: 32.31, ADX: 22.77: 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 6024.18 and 6149.61.
Pre - Market Calls:
BANKINDIA Sell only if it trades below 480 for the Targets of 470 & 468, with the strict Stop Loss of 490.
RELCAPITAL Sell only if it trades below 780 for the Targets of 765 & 760, with the strict Stop Loss of 790.
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