Yesterday, NIFTY made a Black Candlestick with a longer higher shadow, which signifies that the market reverted from day’s high and ended near day’s low. NIFTY had a Gap Up opening of almost 50 points for the day and made a high of 6069.45 for the day, with the METALS Stocks trading in the green and supporting the Index too. BANKING & FINANCE Sectors were the most beaten down sectors for the day. Till the second half of trading session, a very sluggish session was witnessed, with the continuous fall in BANKING & FINANCE Stocks. It continued to trade with 50 points upside till that. After the second half of the trading session, NIFTY lost its day’s gain and slipped swiftly to the day’s low of 5981.70. Stocks turned to day’s low from their day’s high. BANKING & FINANCE Stocks lose almost 2-5% for the day and finally NIFTY ended at 5992.25.
Net Selling of Rs. 201.62 Crore in Cash Segment and of Rs. 788.49 Crore in F&O Segment by FIIs was witnessed on Monday's Trading Session.
In F&O Segment Net Selling as witnessed in Index Futures, Index Options and Stock Options Segment of Rs. 594.12 Crore, Rs. 407.04 Crore and Rs. 20.05 Crore, respectively, while, Net Buying of Rs. 232.73 Crore was witnessed in the Stock Futures Segment.
NIFTY DEC FUTURE ended with the discount of 0.25 points to the Spot NIFTY.
Technically, NIFTY witnessed a bounce back from the levels of 5690 to 6070, after facing a continuous downfall from 6358 to 5690 levels. Now the level of 5960 is acting as a strong support which if breaches again on the closing basis, NIFTY may again test the levels of 5720.
On the Economic Front, JAPAN will be announcing its Coincident Index, Leading Economic Indicator, Core Machinery Orders, Trade Balance and Adjusted Current Account for the month of October and Bank Lending and Money Supply for the month of November. NIESR GDP Estimate for the month of November, BRC Retail Sales Monitor, Halifax House Prices for the month of November, Industrial & Manufacturing Production for the month of October will be announced in UK. GERMANY will be coming out with its Factory Orders for the month of October. Consumer Credit for the month of October and ABC/Washington Post Consumer Confidence will be announced in US.
NIFTY is trading below its 20-Days EMA (Exponential Moving Average) of 5980.27 and the 50-Days SMA (Simple Moving Average) of 6064.49. Both the Moving Averages are indicating a negative crossover, with short term moving average crossing the long term moving average from upside. The first immediate resistance for the NIFTY comes at 5980.
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 6020 / 6050 / 6080 levels. At the same time, 5960 / 5930 / 5900 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 49.96 and 46.40, respectively, showing a negative crossover.
- MACD (26 Days & 12 Days): Their Values are -35.86 and -52.76, respectively. a negative crossover is indicated by both the Moving Averages.
- +DI: 20.45, -DI: 23.81, ADX: 27.12: 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 6064.49 and 5980.27. Both the Moving Averages are showing Negative Crossover.
Pre - Market Calls:
LUPIN Sell at the levels of 476-475 for the Targets of 462 & 460, with the strict Stop Loss of 485.
On the Daily Charts, LUPIN has made a Long Black Candlestick, with a good spurt in volume. The last three candles collectively resembles the formation of Three Black Crows Pattern, which is indicative of the fact that the stock has been at a high price for too long and the stock may be approaching a top or is already at the top. A decisive downward move is reflected by the first black candlestick. The next two days show further decline in prices due to profit taking. Bullish mood of the stock cannot be sustained anymore. The prices breached their 20-Days EMA (Exponential Moving Average) of 484.18 by making a low of 476.30 for the day and closed at 478.15. a further southward movement can be expected in the stock if it breaches its important support of 476. The 50-Days SMA (Simple Moving Average) is quoting at 449.58. The 14-Days RSI (Relative Strength Index) is quoting at 50.74 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (17.83) is below the Negative Directional Index (30.10), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 19.66 on the Daily Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to sell LUPIN at the levels of 476-475 for the Targets of 462 & 460, with the strict Stop Loss of 485.
BANKINDIA Sell only if it trades below 455 for the Targets of 445 & 440, with the strict Stop Loss of 465.
On the Daily Charts, BANKINDIA has made a Long Black Candlestick, with a good spurt in volume. The volumes are rising with advancement in a Black Candlestick. The prices breached their important support of 463 by making a low of 456.20 and closing at 459.35 for the day. Even, the stock last breached its 20-Days EMA (Exponential Moving Average) of 477.52 on the closing basis. After a technical bounce back, the stock is again moving southwards to test its recent low levels. The 50-Days SMA (Simple Moving Average) is quoting at 508.67. The 14-Days RSI (Relative Strength Index) is quoting at 43.82 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (14.39) is below the Negative Directional Index (35.03), ADX (Average Directional Index) has gained strength and is quoting at 34.15 on the Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to sell BANKINDIA only if it trades below 455 for the Targets of 445 & 440, with the strict Stop Loss of 465.
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