Yesterday, NIFTY made a Long Black Candlestick, after making a Black Opening Marubozu Candlestick on the previous day, supporting the formation. A brutal selloff in the BANKING & FINANCE, AUTO, REALTY & INFRA, FERTILIZER, METALS and TEXTILE Stocks was witnessed. A positive opening of almost 30-40 points was witnessed, but immediately NIFTY dipped, with BANKING Stocks taking a dip. Also a big selloff was witnessed in the Index Constituents stocks. The hike in Weekly Inflation also deepened the fear of Increment of Interest Rates by the RBI (Reserve Bank of India). NIFTY continuously breached all its Intraday Supports and made a low of 6022.30 for the day, very near to its important Support of 6020 (on the closing basis). NIFTY however managed to close at 6048.25 levels.
Net Selling of Rs. 385.63 Crore in Cash Segment, while, Net Buying of Rs. 165.05 Crore in F&O Segment by FIIs was witnessed on Thursday's Trading Session.
In F&O Segment Net Buying of Rs. 130.62 Crore and of Rs. 490.63 Crore was witnessed in Index Futures and Index Options, respectively, while, Net Selling was witnessed in Stock Futures and Stock Options of Rs. 433.84 Crore and Rs. 22.36 Crore, respectively.
NIFTY JAN FUTURE ended with the premium of 21.75 points to the Spot NIFTY.
Technically, it was the fourth consecutive session of southbound movement. Both the Moving Averages tried to give a Positive Crossover, but could not succeed and are again converging; confirmation is still required to make the decision about the correct direction. Now the immediate support level comes at 6020 (on the closing basis for NIFTY), while the level of 5960 is next important support level.
On the Economic Front, UK will be coming out with its Halifax House Prices for the month of December. Trade Balance, Current Account, Industrial Production and Retail Sales for the month of November will be announced in GERMANY. EUROPEAN MONETARY UNION will be coming out with its Q3 Gross Domestic Product and Unemployment Rate for the month of November. Nonfarm Payrolls, Average Hourly Earnings, Average Weekly Hours and Unemployment Rate for the month of December and Consumer Credit for the month of November will be announced in US.
NIFTY tested the levels of 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 6033.82 and 6019.62, respectively. Again both the Moving Averages are converging; confirmation is still required to make the decision about the correct direction.
MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) are again reverting from their positive zone, which creates a doubtful situation for the markets.
For the day, intraday resistance for NIFTY comes at 6060 / 6080 / 6100 levels. At the same time, 6020 / 5985 / 5955 will act as major intraday support levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 52.46 and 56.84, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are 36.26 and 23.43, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 23.22, -DI: 25.21, ADX: 16.31: 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 6019.62 and 6033.82. Both the Moving Averages are showing Negative Crossover.
Pre - Market Calls:
BANKBARODA Sell only if it trades below 840 for the Targets of 820 & 810, with the strict Stop Loss of 848.
On the Daily Charts, BANKBARODA has made a Long Black Candlestick, with a good spurt in volume. The Candle signals that it was a day for bears and such a bearish rally should cause concern among the bulls. The volumes of the stock have also risen from the previous day’s volumes on Wednesday. The stock made a low of 829.15 for the day and closed at 838.55. The stock has dipped below its both of the moving averages. Its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) are quoting at 891.23 and 938.30, respectively, signaling a negative crossover between the two. The 14-Days RSI (Relative Strength Index) is quoting at 28.36 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (9.62) is below the Negative Directional Index (29.00), ADX (Average Directional Index) has gained strength and is quoting at 34.77 on the Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to sell BANKBARODA only if it trades below 840 for the Targets of 820 & 810, with the strict Stop Loss of 848.
UNITECH Sell only if it trades below 61 for the Targets of 59 & 58, with the strict Stop Loss of 61.90.
On the Daily Charts, UNITECH has made a Long Black Candlestick, with a good spurt in volume. The Candle signals that it was a day for bears and such a bearish rally should cause concern among the bulls. The volumes of the stock have also risen from the previous day’s volumes on Wednesday. The stock has given a breakout and successfully came out of its consolidation zone. The stock made a low of 61.25 for the day and closed at 61.60. The stock has dipped below its 20-Days EMA (Exponential Moving Average) of 64.61 and the 50-Days SMA (Simple Moving Average) is quoting at 70.91, signaling a negative crossover between the two. The 14-Days RSI (Relative Strength Index) is quoting at 38.25 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (13.70) is below the Negative Directional Index (26.66), ADX (Average Directional Index) has gained strength and is quoting at 41.97 on the Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to sell UNITECH only if it trades below 61 for the Targets of 59 & 58, with the strict Stop Loss of 61.90.
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