Yesterday, on the Daily Charts, NIFTY made a Long White Candlestick. The Long White Candlestick shows that the prices advanced significantly from open to close during the day under strong buying pressure and buyers were aggressive. The Long White Candlestick is generally a bullish pattern. Long White Candlesticks may show a potential turning point or they may show that prices have reached to a support level if they are seen after an extended decline. NIFTY had a strong opening of almost 40-50 points in the upside. After a strong opening, an immediate selloff was witnessed, which dragged NIFTY to the day’s low of 5905.15. Along with NIFTY, sectors like BANKING, OMCs, and CAPITAL GOODS also witnessed a selling pressure. After the closing of Asian Markets, NIFTY bounced back from its day’s low and made a high of 6020.25 for the day, backed by positive move in European Markets inspired by weekend news that Ireland will begin formal negotiations with the International Monetary Fund and the European Union over a bailout package. BANKING, AUTO, TEXTILE, IT and SUGAR were the sectors which actively took part in the sharp rally. After three consecutive sessions of downturn, NIFTY bounced back again and ended the session at 6010.
Net Buying of Rs. 335.80 Crore in Cash Segment and of Rs. 1136.68 Crore in F&O Segment by FIIs was witnessed in Monday’s Trading Session.
In F&O Segment Net Buying of Rs. 445.99 Crore and Rs. 787.31 Crore in Stock Futures was witnessed, whereas Net Selling of Rs. 83.87 Crore was witnessed in Index Options and of Rs. 12.75 Crore in Stock Options.
NIFTY NOV FUTURE premium ended neck to neck of NIFTY Spot on Monday.
Japanese Markets will witness a trading holiday on account of Labor Thanksgiving day. Gfk Consumer Confidence Survey, Q3 Gross Domestic Product and Purchasing Manager Index for Services & Manufacturing will be announced in Germany. European Monetary Union will be announcing its Purchasing Managers Index for Manufacturing & Services. Gross Domestic Product and Real Personal Consumption Expenditure for Q3, along with Existing Home Sales for the month of October, Richmond Fed Manufacturing Index for the month of November and ABC/Washington Post Consumer Confidence will be announced in US.
NIFTY is trading below its 20-Days EMA (Exponential Moving Average) of 6089.08 and the 50-Days SMA (Simple Moving Average) of 6066.20. The next important support levels lie at 5840 and 5725.
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 6035 / 6050 / 6080 levels. At the same time, 5935 / 5900 / 5880 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 45.76 and 48.04, respectively, showing a negative crossover.
- MACD (26 Days & 12 Days): Their Values are -9.64 and 39.89, respectively. a negative crossover is indicated by both the Moving Averages.
- +DI: 15.14, -DI: 29.79, ADX: 24.22: 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 6066.20 and 6089.08.
IDFC Buy only if it trades above 194 for the Targets of 198 & 200, with the strict Stop Loss of 192.
AREVAT&D Buy only if it trades above 301 for the Targets of 308 & 310, with the strict Stop Loss of 297.
IVRCLINFRA Buy only if it trades above 131 for the Targets of 134 & 136, with the strict Stop Loss of 129.
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