On the Daily Charts, NIFTY has made a Small Black Candlestick. A muted opening was witnessed with almost 15-20 points in the positive territory. With the Asian Markets trading flat in the Green, NIFTY too turned positive for after the opening. But with the profit booking witnessed in the METALS, SUGAR, AUTO and IT Sectors, the markets turned highly volatile for the day. A bit of push in the Intraday was also witnessed in the BANKING, OMCs and REALTY & INFRA Stocks, which did not sustain till the end and the Sectors ended in Red for the day. The whole day NIFTY tried to cross its important resistance of 6025, but could not move above the day’s high of 6023.80. For the day, NIFTY made a low of 5958 and closed the session at 5984.40.
Net Selling of Rs. 67.57 Crore in Cash Segment while Net Buying of Rs. 947.02 Crore in F&O Segment by FIIs was witnessed on Tuesday's Trading Session.
In F&O Segment Net Buying of Rs. 130.34 Crore and of Rs. 898.75 Crore was witnessed in Index Futures and Index Options, respectively, while, Net Selling was witnessed in Stock Futures and Stock Options of Rs. 77.33 Crore and Rs. 4.75 Crore, respectively.
NIFTY DEC FUTURE ended with the premium of 10.75 points to the Spot NIFTY.
Technically, NIFTY bounced back, but with lack of buying interest and very sluggish volumes. NIFTY is now trading above its 20-days EMA (Exponential Moving Average) of 5948.07, but it was not able to cross the resistance of its 50-Days SMA (Simple Moving Average) of 6025.44. Now the next resistances for NIFTY come at 6080 and 6100 levels, whereas the level of 5850 is acting as a Good Support Level.
On the Economic Front, JAPAN will be observing a Trading Holiday on account of The Emperor’s Birthday. BBA Mortgage Approvals and Index of Services for the month of October will be announced in UK. US will be coming out with its Durable Goods Orders, Personal Income, Core Personal Consumption Expenditure – Prices Index and New Home Sales for the month of November and Initial Jobless Claims, Continuing Jobless Claims and Reuters/Michigan Consumer Sentiment Index for the month of December.
NIFTY is trading above its 20-Days EMA (Exponential Moving Average) of 5948.07. Now the next resistance for NIFTY comes at its 50-Days SMA (Simple Moving Average) of 6025.44, which it tried to touch today but could not touch it and made a high of 6023.80 only. 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. Brutal selling in BANKING stocks, which maintained the markets to life time high, indicates a very cautious approach to be followed while trading in the markets at this stage. Investors are also suggested to avoid making fresh investments at this stage.
For the day, intraday resistance for NIFTY comes at 6025 / 6040 / 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 51.99 and 49.13, respectively, showing a negative crossover.
- MACD (26 Days & 12 Days): Their Values are -13.72 and -34.03, respectively. a negative crossover is indicated by both the Moving Averages.
- +DI: 18.95, -DI: 20.69, ADX: 20.67: 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 6025.44 and 5948.07. Both the Moving Averages are showing Negative Crossover.
Pre - Market Call:
TATACHEM Buy at the levels of 389-390 for the Targets of 400 & 404, with the strict Stop Loss of 385.
On the Daily Charts, TATACHEM has made a White Opening Marubozu Candlestick, after the formation of a Black Closing Marubozu Candlestick, with a good spurt in volume. The stock had a positive movement for whole of the trading session. The stock’s is trading above its 20-Days EMA (Exponential Moving Average) of 371.50 and its 50-Days SMA (Simple Moving Average) is quoting at 391.29, which if crossed successfully in the next trading session, will invite more buying in the stock. The 14-Days RSI (Relative Strength Index) is quoting at 58.20 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (17.51) is still below the Negative Directional Index (18.54), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 28.85 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 TATACHEM at the levels of 389-390 for the Targets of 400 & 404, with the strict Stop Loss of 385.
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