On Friday, NIFTY made a Long Black Candlestick, which was the fifth continuous session ending in the Red. It can be said that it was a week ending in Red. A brutal selloff was witnessed in the markets as the fear of Interest Rate hike by RBI (Reserve Bank of India) gripped them. REALTY & INFRA, AUTO, CONSUMER DURABLES and METALS were the biggest looser of the day. A flat opening with the positive bias was witnessed in the NIFTY, but a continuous selloff was there in the stocks since morning, a bit of short covering was witnessed in the BANKING & FINANCE Stocks in the middle of trading session. After the Government’s statement on the increased food inflation up to 18%, stocks (especially the Interest Rate Sensitive Stocks) took a dip knock the other day. NIFTY took a deep cut of almost 160 points by breaching all its important supports and made a low of 5883.60. Even, NIFTY also broke its important support of 5900 on the closing basis. The selloff was more of a panic selloff. For the day, NIFTY made a high of 6051.20 (immediately after opening) and managed to close above the levels of 5900 at 5904.60.
Net Selling of Rs. 1040.74 Crore in Cash Segment and of Rs. 18.65 Crore in F&O Segment by FIIs was witnessed on Thursday's Trading Session.
In F&O Segment Net Buying of Rs. 1880.60 Crore was witnessed in Index Options, while, Net Selling was witnessed in Index Futures, Stock Futures and Stock Options of Rs. 1229.64 Crore, Rs. 627.82 Crore and Rs. 41.79 Crore, respectively.
NIFTY JAN FUTURE ended with in Discount of 8.50 points to the Spot NIFTY.
Technically, it was the fifth consecutive session of southbound movement. Both the Moving Averages tried to give a Positive Crossover, but could not succeed and after converging have again given a Negative Crossover now. A short term selloff may be witnessed again in NIFTY and it may touch the levels of 5835 or 5800. A bit of short covering may be witnessed on the next trading session, especially in AUTO Sector. Now the immediate support level comes at 5830 (on the closing basis for NIFTY), while the level of 5720 is next important support level.
On the Economic Front, JAPAN will be witnessing Trading Holiday on account of Coming-of-Age Day. Sentix Investor Confidence for the month of December will be announced by EUROPEAN MONETARY UNION.
NIFTY after testing the levels of 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 6021.51 and 6017.46, respectively, moved below them by making a low of 5883.60 and closing at 5904.60. Both the Moving Averages after getting converged have again given a Negative Crossover now.
MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) are again turning southbound but still are not giving any proper clue of the further direction of the markets.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 41.24 and 53.72, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are 21.19 and 25.83, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 19.91, -DI: 33.41 ADX: 16.96: 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 6017.46 and 6021.51. Both the Moving Averages are showing Negative Crossover.
No comments:
Post a Comment