Yesterday, NIFTY made a Southern Doji Candlestick, which is a Bullish Reversal Pattern, the significance of which proves more if the next candle closes above the Southern Doji’s Close. NIFTY had a muted opening of almost 5-10 points in the positive bias. For whole of the session, NIFTY traded very range bound and a very sluggish session was witnessed for the day. OMCs (Oil Marketing Companies) had a positive movement at the starting of the session, due to increment in Petrol prices by `2.50/liter. But a good selling pressure was witnessed in the AIRWAYS, AUTO, REALTY & INFRA, TEXTILE and FINANCE Stocks took a dip for the day. A kind of stock specific movement was witnessed, as results season has commenced. For the day, NIFTY made a high of 5696.15, while a low of 5624.15. Finally, for the day NIFTY closed at the levels of 5654.75.
Net Selling of Rs. 173 Crore in Cash Segment and Net Buying of Rs. 491.67 Crore in F&O Segment by FIIs was witnessed on Monday’s Trading Session.
In F&O Segment Net Buying of Rs. 606.12 Crore and of Rs. 339.97 Crore was witnessed in Index Futures and Stock Futures, respectively, while, Net Selling was witnessed in Index Options and Stock Options of Rs. 442.69 Crore and of Rs. 11.74 Crore.
NIFTY JAN FUTURE ended in Minimal Premium of 2.40 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. NIFTY, if closes above the previous days’ close now as indicated by the Candlesticks, it may witness a pull back up to the levels of 5750. The levels of 5600 and 5580 are acting as Strong Support for NIFTY (on the closing basis).
On the Economic Front, JAPAN will be coming out with its Industrial Production, Tertiary Industry Index and Capacity Utilization for the month of November and Machine Order Tools for the month of December. Nationwide Consumer Confidence, RICS House Price Balance, Consumer Price Index, Core Consumer Price Index, Retail Price Index for the month of December and DCLG House Price Index for the month of November will be announced in UK. GERMANY & EUROPEAN MONETARY UNION will be coming out with its ZEW Survey – Economic Sentiment for the month of January. Net Long-term TIC Flows and Total Net TIC Flows for the month of November, NAHB Housing Market Index for the month of January and ABC/Washington Post Consumer Confidence will be announced in US.
Q3 2011 Results Season has commenced all over the Globe. In India, BAJAJFINSERV, CONCOR, EXIDEIND, GAIL, HCLTECH, IBPOW, IBREALEST, MASTEK, NIITTECH, OPTOCIRCUIT, PETRONET and TATAELXSI will be posting their Quarterly Numbers today. In US, APPLE INC. and CITIGROUP INC. will be posting their Quarterly Numbers today. Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to avoid making Fresh Investments at this point of time in the Markets and Book Profits at each high of the market.
NIFTY is now again trading below its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 5890.78 and 5972.60. 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 5690 / 5720 / 5750 levels. At the same time, 5620 / 5580 / 5550 will act as major intraday support levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 32.77 and 39.88, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -71.07 and -13.54, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 11.96, -DI: 33.23, ADX: 25.96: 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 5972.60 and 5890.78. Both the Moving Averages are showing Negative Crossover.
Pre - Market Call:
BANKINDIA Buy at the levels of 441-442 for the Targets of 452 & 455,with the strict Stop Loss of 436.
On the Daily Charts, BANKINDIA has made a Long White Candlestick, with a good spurt in Volume. The stock is facing a strong resistance at the levels of 441-442, which it touched yesterday by making a high of 441 for the day. The stock also touched its 20-Days EMA (Exponential Moving Average) of 439.99 by making a high of 441 but it closed at 437.30 for the day. The 50-Days SMA (Simple Moving Average) is quoting at 455.86. The 14-Days RSI (Relative Strength Index) is quoting at 47.40 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (19.26) is still below the Negative Directional Index (20.92), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 20.60 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 BANKINDIA @ 441-442 for the Targets of 452 & 455, with the strict Stop Loss of 436.
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