Yesterday, NIFTY made a Short White Candlestick. A good amount of short covering was witnessed in the markets. All the beaten down stocks and sectors witnessed short covering of almost 2-6%. A Gap up opening of almost 80 points, but immediately dipped to the levels of 5754.70. A good buying interest was witnessed in the PACKAGING & FERTILIZER Stocks, which may continue till tomorrow. Again in the second half of trading session, with European Markets in the green, NIFTY bounced again made a high of 5843.15 for the day. For the day, NIFTY ended the session at 5830.
Net Selling of Rs. 628.77 Crore in Cash Segment and of Net Buying of Rs. 1823.21 Crore in F&O Segment by FIIs was witnessed on Monday's Trading Session.
In F&O Segment Net Buying of Rs. 697.58 Crore in Index Futures, of Rs. 667.81 Crore in Index Options, and of Rs. 526.07 Crore in Stock Futures Segment was witnessed, whereas Net Selling of Rs. 68.25 Crore in Stock Options Segment was witnessed.
NIFTY DEC FUTURE ended with the premium of 18.50 points to the Spot NIFTY.
Technically speaking, a technical bounce back or say the short covering was witnessed after NIFTY breached the important physiological support level of 5800 on Friday. Markets traded with very low volume, hence proving the day only to be a Short Covering. Each day NIFTY is breaching its important support levels, hence, traders are suggested to trade cautiously in the markets and investors are suggested to avoid investing heavily at his time in the markets. Markets are still expected to be bearish with the next support levels seen at 5650 and 5550.
On the Economic Front, JAPAN will be coming out with its Labor Cash Earnings, Vehicle Production, Annualized Housing Starts, Construction Orders and Housing Starts for the month of October. Gfk Consumer Confidence for the month of November will be announced in UK and the Unemployment Change for the month of October will be announced in GERMANY. EUROPEAN MONETARY UNION will be coming out with Consumer Price Index for the month of November and Unemployment Rate for the month of October. S&P/Case-Shiller Home Price Indices for the month of September, Chicago Purchasing Mangers’ Index, Consumer Confidence and ABC/Washington Post Consumer Confidence for the month of November will be announced in US.
NIFTY is trading below its 20-Days EMA (Exponential Moving Average) of 5987.20 and the 50-Days SMA (Simple Moving Average) of 6067.24. Both the Moving Averages are indicating a negative crossover, with short term moving average crossing the long term moving average from upside.
MACD (Moving Average Convergence Divergence) has entered into negative territory now. 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 5850 / 5880 / 5920 levels. At the same time, 5780 / 5750 / 5700 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 39.76 and 41.19, respectively, showing a negative crossover.
- MACD (26 Days & 12 Days): Their Values are -69.08 and -22.68, respectively. a negative crossover is indicated by both the Moving Averages.
- +DI: 27.92, -DI: 24.53, ADX: 27.75: 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 6067.24 and 5987.20. Both the Moving Averages are showing Negative Crossover.
BANKINDIA Buy at the levels of 462-463 for the Targets of 472 & 476, with the strict Stop Loss of 458.
On the Daily Charts, BANKINDIA has made a Long White Candlestick, with a good spurt in Volume. The candle closed above the previous day’s closing too. Stock’s 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) are quoting at 477.96 and 510.75, respectively. The prices started their upside movement at the starting of the trading session and maintained it till the end of the session. Stock is facing important resistance at 463. If the stock breaks this level, a good upside will be witnessed. Stock made a high of 459.80 for the day and closed at 454.60. The 14-Days RSI (Relative Strength Index) has strengthened on the Charts and is quoting at 41.72 (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (12.46) is below the Negative Directional Index (34.28), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 34.28 on the Daily Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to buy BANKINDIA at the levels of 462-463 for the Targets of 472 & 476, with the Strict Stop Loss of 458.
IGL Buy at the levels of 329-330 for the Targets of 336 & 340, with the strict Stop Loss of 325.
On the Daily Charts, IGL has made a Long White Candlestick, with a good spurt in volume. The Candle has a longer lower shadow, which indicates that the buying pressure in the stock pulled up the prices from day’s low with volume. The stock has a strong resistance of 329 levels, which it crossed by making a high of 331.20 and closed at 329 for the day. Both the 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) are quoting at almost the same levels of 319.61 and 319.89, respectively. The 14-Days RSI (Relative Strength Index) is quoting at 56.08 (RSI below 50 indicates weakness or confirms the Selling signal) on the Daily Charts. The Positive Directional Index (20.55) is above the Negative Directional Index (18.80), ADX (Average Directional Index) has gained strength on the Intraday Charts is quoting at 13.90 on the Daily Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to buy IGL at the levels of 329-330 for the Targets of 336 & 340, with the Strict Stop Loss of 325.
CHAMBLFERT Buy only if it trades above 93.60 for the Targets of 96 & 98, with the strict Stop Loss of 92.
On the Daily Charts, CHAMBLFERT has made a Long White Candlestick, with a good spurt in volume. The stock has a strong resistance of 93.60 levels, which it crossed by making a high of 94.40 and closed at 93.50 for the day. The stock opened above its 50-Days SMA (Simple Moving Average) of 83.88 at 86 and moved above its 20-Days EMA (Exponential Moving Average) of 89.73, even maintained to close above it. The 14-Days RSI (Relative Strength Index) is quoting at 56.39 (RSI below 50 indicates weakness or confirms the Selling signal) on the Daily Charts. The Positive Directional Index (21.35) is above the Negative Directional Index (20.90), ADX (Average Directional Index) has gained strength on the Intraday Charts is quoting at 20.33 on the Daily Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to buy CHAMBLFERT only if it trades above 93.60 for the Targets of 96 & 98, with the Strict Stop Loss of 92.
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