Nifty Outlook for 05th January 2010 and Pre Market Calls

Yesterday, NIFTY made a Short Black Candlestick on the Daily Charts. After a long time, NIFTY witnessed a muted opening of almost 10-15 points. Selling Pressure was witnessed in the BANKING, AUTO and REALTY & INFRA Stocks. METALS witnessed a bit of profits booking. A bit of sluggish session was witnessed, but a good trading momentum was witnessed in SUGAR and TYRE Stocks. Markets turned green with the opening of the European Markets, as they had a robust opening after the trading holidays of almost 2-3 sessions. NIFTY made a high of 6181.05, but again dipped to the day’s low of 6124.40 at the time of closing. Finally, the session ended at 6146.35. 

Net Buying of Rs. 717.76 Crore in Cash Segment, while, Net Selling of Rs. 246.99 Crore in F&O Segment by FIIs was witnessed on Tuesday's Trading Session.

In F&O Segment Net Buying of Rs. 108.74 Crore and of Rs. 132.02 Crore was witnessed in Index Futures and Index Options, respectively, while, Net Selling was witnessed in Stock Futures and Stock Options of Rs. 486.80 Crore, Rs. 295.92 Crore and Rs. 0.95 Crore, respectively.     

NIFTY DEC FUTURE ended with the premium of 12.65 points to the Spot NIFTY.

Technically, NIFTY has formed a sort of Double Bottom Bullish Reversal Pattern, the breakout of which was given on Friday by closing above 6080 mark at the level of 6134.50. NIFTY has crossed its important resistance of 6080 successfully and is now expected to touch the life time high of 6338 soon. Now the level of 5960 is an important support level for NIFTY, whereas 6180 is the strong resistance to be crossed.

On the Economic Front, JAPAN will be coming out with its Vehicle Sales for the month of December. Purchasing Manager Index Services for the month of December will be announced in GERMANY and EUROPEAN MONETARY UNION. Other than this, EUROPEAN MONETARY UNION will also be coming out Industrial New Orders for the month of October, Producer Price Index for the month of November and December. US will be coming out with MBA Mortgage Applications, ADP Employment Change and ISM Non-Manufacturing for the month of December.  

NIFTY is trading above both of its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 6027.30 and 6020.82, respectively. Even the distance between both the Moving Averages is now reducing, and if the short term moving average crosses the long term moving average from downside, it will prove to be a positive crossover between both the averages.  

MACD (Moving Average Convergence Divergence) is reverting from the oversold region and RSI (Relative Strength Index) has also reverted from the oversold zone. Investors are suggested to accumulate the BUDGET Driven Sectors Stocks like FERTILIZER, RAILWAY, METAL, CAPITAL GOODS, EDUCATION, etc. 

For the day, intraday resistance for NIFTY comes at 6180 / 6210 / 6240 levels. At the same time, 6120 / 6090 / 6065 will act as major intraday support levels.

What does Indicators Say?

1. RSI (14 Days & 9 Days): The values are 62.77 and 58.53, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are 41.74 and 13.40, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 27.58, -DI: 19.28, ADX: 18.29: 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.
4. SMA (50 Days) & EMA (20 Days): The values of these two indicators are 6020.82 and 6027.30. Both the Moving Averages are showing Negative Crossover.

Pre - Market Calls:

TECHM   Buy at the levels of 744-745 for the Targets of 765 & 770,with the strict Stop Loss of 736.

On the Daily Charts, TECHM has made a Long White Candlestick with a good spurt in Volume. Yesterday, the stock made a high of 752 and closed at 744.60. A good spurt in Volume was witnessed in the last hour of Trading Session yesterday in the stock, hence it is expected that the positive movement in the stock will continue on the next trading session too. The stock is trading above its 20-Days EMA (Exponential Moving Average) and the 50-Days SMA (Simple Moving Average) of 693.03 and 697.45, respectively. The 14-Days RSI (Relative Strength Index) is quoting at 70.07 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (31.79) is above the Negative Directional Index (15.66), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 18.19 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 TECHM at the levels of 744-745 for the Targets of 765 & 770, with the strict Stop Loss of 736. 

EXIDEIND   Buy only if it trades above 172.70 for the Targets of 178 & 180,with the strict Stop Loss of 170.80.

On the Daily Charts, EXIDEIND has made a Long White Candlestick, with a good spurt in volume. The volumes of the stock have also risen from the previous day’s volumes on Monday. The stock made a high of 172.90 and also maintained very well above its important resistance of 169 for whole of the day, even, it closed above it at 171.95 for the day. The stock is trading above its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 166.20 and 163.88, respectively. Also, the volume infusion in the stock in the last hour of Trading indicates that the positive movement in the stock will continue in the next trading session too. The 14-Days RSI (Relative Strength Index) is quoting at 60.08 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (21.07) is above the Negative Directional Index (17.73), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 14.91 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 EXIDEIND only if it trades above 172.70 for the Targets of 178 & 180, with the strict Stop Loss of 170.80. 

CESC   Buy 

at the levels of 377-378 for the Targets of 385 & 390,with the strict Stop Loss of 373.

On the Daily Charts, CESC has made a Long White Candlestick with a slight spurt in Volume. Yesterday, the stock made a high of 379 and closed at 377.20. A good spurt in Volume was witnessed in the last hour of Trading Session yesterday in the stock, hence it is expected that the positive movement in the stock will continue on the next Trading Session too. The stock crossed both its 20-Days EMA (Exponential Moving Average) 50-Days SMA (Simple Moving Average) of 368.60 and 371.71, respectively, yesterday. The 14-Days RSI (Relative Strength Index) is quoting at 57.95 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (26.07) is above the Negative Directional Index (16.76), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 20.01 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 CESC at the levels of 377-378 for the Targets of 385 & 390, with the strict Stop Loss of 373.