Yesterday, NIFTY has made a Long Black Candlestick, the formation of last three candles appear as the formation of Three Black Crows Pattern. It was sixth continuous session ending in the Red for NIFTY. NIFTY had a muted opening of almost 10-15 points with negative bias, but immediately in about 15-20 minutes, NIFTY lost almost 50-60 points and again breached its another important Support of 5840. An unexpected selling in MINING & METAL Stocks was witnessed due to flooding in Coking Mines of Australia; there were many triggers which again led to panic selloff in markets till second half of the trading session. Bangladesh’s Stock Market also faced a Lower Freeze and the Indonesian Markets were down almost 4% due to rising Inflation in the country. Till the second half of trading session, NIFTY touched it’s another important Support of 5800 and breached it after the opening of European Markets, as the Markets slipped over there with banks under pressure and sovereign-debt concerns in the spotlight after weekend talk that Portugal is being pressured to take a bailout. A brutal selloff was again witnessed all over the Counters, like, AUTO, CONSUMER DURABLES, CAPITAL GOODS, REALTY & INFRA, BANKING & FINANCE, TEXTILES, SUGAR, OIL & GAS, MINING, METAL and TEXTILE. NIFTY took a deep cut of almost 150 points by breaching all its important supports and made a low of 5740.95. Even, NIFTY also broke its important support of 5800 on the closing basis. The selloff was more of a panic selloff. For the day, NIFTY made a high of 5907.25 (immediately after opening) and managed to close at 5762.85.
Net Selling of Rs. 1138.78 Crore in Cash Segment and Net Buying of Rs. 2012.65 Crore in F&O Segment by FIIs was witnessed on Monday’s Trading Session.
In F&O Segment Net Buying of Rs. 2085.58 Crore and of Rs. 462.46 Crore was witnessed in Index Options and Stock Futures, respectively, while, Net Selling was witnessed in Index Futures and Stock Options of Rs. 525.33 Crore, Rs. 627.82 Crore and Rs. 10.05 Crore, respectively.
NIFTY JAN FUTURE ended with in Discount of 5.85 points to the Spot NIFTY.
Technically, it was the sixth 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. As expected, NIFTY did not even witnessed a Short Covering after a brutal and panic selloff on Friday as Negative News Flow all over the globe weighed more on NIFTY. Now the immediate support level comes at 5720 (on the closing basis).
On the Economic Front, JAPAN will be coming out with its Coincident Index, Leading Economic Index, Adjusted Current Account for the month of November, Money Supply M2+CD and Trade Balance on BOP Basis for the month of November. Trade Balance for the month of November will be announced in AUSTRALIA. US will be coming out with its IBD/TIPP Economic Optimism for the month of January, Wholesale Inventories for the month of November and ABC/Washington Post Consumer Confidence.
NIFTY is now again trading below its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 6012.96 and 5996.88. Both the Moving Averages have again given a Negative Crossover, as Short Term Moving average has crossed the Long Term Moving Average from upside to the southward direction.
MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) have again turned southbound, signaling a bit of more selling pressure to come in.
For the day, intraday resistance for NIFTY comes at 5785 / 5812 / 5834 levels. At the same time, 5720 / 5680 / 5650 will act as major intraday support levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 33.60 and 49.69, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -2.17 and 25.83, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 17.28, -DI: 40.32, ADX: 18.60: 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 6012.96 and 5996.88. Both the Moving Averages are showing Negative Crossover.
Positional Calls:
ONGC Sell at the levels of 1180-1175 for the Targets of 920 & 900, with the strict Stop Loss of 1350.
On the Weekly Charts, ONGC has made a Head & Shoulders Pattern, which is a Bearish Reversal Pattern. The Breakdown from the neckline was given by the stock yesterday by making a low of 1167.60 and closing at 1174.35. ONGC made life time high of 1475 and is now reverting from that level. With the breakdown of Neckline of the Head & Shoulders Pattern, it may touch the level of 980/900 too. On the Weekly Charts, its 14-Days RSI (Relative Strength Index) is quoting at 38.77, while on the daily charts it has entered into the Oversold Zone and is quoting at 21.75. The stock is trading much below its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 1272.35 and 1298.66, respectively. The Positive Directional Index (9.70) is trading much below the Negative Directional Index (40.12), ADX (Average Directional Index) is quoting at 24.39 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 ONGC FUT @ 1180-1175 for the Targets of 920 & 900, with the strict Stop Loss of 1350.
AMBUJACEM Sell at the levels of 130-128 for the Targets of 105 & 102, with the strict Stop Loss of 150.30.
On the Daily Charts, AMBUJACEM has made a Head & Shoulders Pattern, which is a Bearish Reversal Pattern. The Breakdown from the neckline was given on Friday and yesterday it made a low of 125.85 and closing at 127.45. AMBUJACEM is reverting from its life time high. With the breakdown of Neckline of the Head & Shoulders Pattern, it may touch the level of 105/102 too. On the Daily Charts, its 14-Days RSI (Relative Strength Index) is quoting at 30.98. The stock is trading much below its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 138.57 and 143.44, respectively. The Positive Directional Index (17.65) is trading much below the Negative Directional Index (27.69), ADX (Average Directional Index) is quoting at 21.96 on the Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to sell AMBUJACEM @ 130-128 for the Targets of 105 & 102, with the strict Stop Loss of 150.30.
No comments:
Post a Comment