Yesterday, NIFTY has made a Black Spinning Top Candlestick Pattern, which represents complete indecision between the bulls and the bears. If a Black Spinning Top is observed after a long decline or a long black candlestick, this implies weakness among the bears and it is a warning about a potential change or interruption in trend. Last session was a True Roller Coaster Ride for the markets. NIFTY dipped two times in a day with a good selling pressure. NIFTY had a muted opening of almost 10-15 points with positive bias, but immediately in about 15-20 minutes, NIFTY gained almost 50-60 points and made a high of 5842.60 for the day. BANKING Stocks witnessed a strong pullback for the day due to Short Covering. Again after touching the day’s high NIFTY dipped almost 10 points in the negative terrain and again reverted to the positive terrain of 45-50 points. A strong selling was witnessed in RELALTY & INFRA, TEXTILE, IT and METALS Stocks. Till the last hour of trading NIFTY traded in the positive terrain with almost 35-40 points plus and in the last hour, NIFTY swiftly dipped to day’s low of 5698.20 (breaching an important support of 5720). And immediately after kissing days low, it again moved in the positive terrain with 35 points plus in last 15 minutes of trading. Even, NIFTY also broke its important support of 5800 on the closing basis. For the day, NIFTY closed at the levels of 5754.10.
Net Selling of Rs. 1162.57 Crore in Cash Segment and Net Buying of Rs. 1056.44 Crore in F&O Segment by FIIs was witnessed on Tuesday’s Trading Session.
NIFTY JAN FUTURE ended in Premium of 54.10 points to the Spot NIFTY.
In F&O Segment Net Buying of Rs. 475.22 Crore, of Rs. 118.53 Crore and of Rs. 471.11 Crore was witnessed in Index Futures, Stock Options and Stock Futures, respectively, while, Net Selling was witnessed in Stock Options of Rs. 8.42 Crore.
NIFTY JAN FUTURE ended in Premium of 54.10 points to the Spot NIFTY.
Technically, 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 pullback may be witnessed again in NIFTY and it may touch the levels of 5845 or 5960. Now the immediate support level comes at 5720 (on the closing basis).
On the Economic Front, AUSTRALIA will be coming out with its Home Loans and Investment Lending for the month of November. Economic Watchers Survey for the Current period and an Outlook for the month of December will be announced in JAPAN. Index of Industrial Production (IIP) for the month of November will be announced in India. Nationwide Consumer Confidence, BRC Shop Price Index and Total Trade Balance for the month of November will be announced in UK. EUROPEAN MONETARY UNION will be coming out with its Industrial Production for the month of November. MBA Mortgage Applications and Import Price Index will be announced in US.
NIFTY is now again trading below its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 6007.69 and 5973.76. 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 5800 / 5830 / 5865 levels. At the same time, 5720 / 5695 / 5660 will act as major intraday support levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 33.19 and 46.39, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -21.14 and 21.97, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 15.38, -DI: 39.14, ADX: 20.38: 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 6007.69 and 5973.76. Both the Moving Averages are showing Negative Crossover.
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