Yesterday, NIFTY made a Small White Candlestick, which closed above the previous close. A short covering was witnessed in the BANKING & FINANCE and REALTY & INFRA Sector for the day. NIFTY had a Gap down Opening of almost 40-45 points, but it recovered (almost 20-30 points) with REALTY & INFRA stocks witnessing Short Covering. NIFTY traded very range bound in the negative zone till second half of trading session. After the opening of the European Markets, NIFTY knocked down again and dipped almost 55 points for the day making a low of 5634.50, breaching important support level of 5700. But immediately after testing day’s low NIFTY bounced back with BANKNIFTY and all the BANKING Stocks witnessing a sharp pullback, helped by Short Covering. IT stocks again gave a positive movement for the day. A kind of stock specific movement was witnessed, as results season has commenced. Finally, for the day NIFTY closed at the levels of 5711.60.
Net Selling of Rs. 943.91 Crore in Cash Segment and of Rs. 595.08 crore in F&O Segment by FIIs was witnessed on Thursday’s Trading Session.
In F&O Segment Net Buying of Rs. 333.71 Crore was witnessed in Stock Futures, while, Net Selling was of Rs. 813.89 Crore, of Rs. 55.97 Crore and of Rs. 58.93 Crore was witnessed in Index Futures, Index Options and Stock Options, respectively.
NIFTY JAN FUTURE ended in Minimal Premium of 6.65 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 may now witness a pull back up to the levels of 5750 and 5840. The levels of 5600 and 5580 are acting as Strong Support for NIFTY (on the closing basis). Currently NIFTY is struggling to close above the levels of 5720 too.
On the Economic Front, AUSTRALIA will be coming out with its Q4 Import and Export Price Index and RBA Foreign Exchange Direction for the month of December. All Industry Activity Index for the month of November will be announced in JAPAN. UK will be coming out with its Retail Sales for the month of December.
Q3 2011 Results Season has commenced all over the Globe. In India, BANKINDIA, MAHABANK, BHEL, CORPBANK, DISHTV, EDELWEISSCAP, HCC, IFCI, INDIABULLS, ITC, M&MFIN, NIIT, PNB, POLARIS, PRAJIND, RAYMOND, RIL, TECHM and WIPRO will be posting their Quarterly Numbers today. In US, GENERAL ELECTRIC COMPANY, will be posting its 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 5843.51 and 5937.39. 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 5720 / 5750 / 5780 levels. At the same time, 5660 / 5630 / 5600 will act as major intraday support levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 38.57 and 38.95, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -81.21 and -50.64, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 13.15, -DI: 29.59, ADX: 28.31: 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 5937.39 and 5843.51. Both the Moving Averages are showing Negative Crossover.
Pre - Market Call:
IDBI Buy only if it trades above 152 for the Targets of 156 & 158,with the strict Stop Loss of 150.
On the Daily Charts, IDBI has made a Long White Candlestick, with a good spurt in Volume. Yesterday’s Candle has engulfed its previous day’s candle too. The stock is facing a small resistance at the level of 152, which it almost touched yesterday by making a high of 151.15. The stock is trading below its 20-Days EMA (Exponential Moving Average) of 152.73 and 50-Days SMA (Simple Moving Average) of 163.71. The 14-Days RSI (Relative Strength Index) is quoting at 44.18 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (18.58) is still below the Negative Directional Index (29.66), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 32.53 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 IDBI only if it trades above 152 for the Targets of 156 & 158, with the strict Stop Loss of 150.
SYNDIBANK Buy only if it trades above 152 for the Targets of 156 & 158,with the strict Stop Loss of 150.
On the Daily Charts, SYNDIBANK has made a Long White Candlestick, with a good spurt in Volume. Yesterday’s Candle has engulfed its previous day’s candle too. The stock is facing a small resistance at the level of 106, which it almost touched yesterday by making a high of 105.50. The stock is trading below its 20-Days EMA (Exponential Moving Average) of 111.50 and 50-Days SMA (Simple Moving Average) of 126.68. The 14-Days RSI (Relative Strength Index) is quoting at 37.12 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (15.58) is still below the Negative Directional Index (36.41), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 40.21 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 SYNDIBANK only if it trades above 106 for the Targets of 109 & 111, with the strict Stop Loss of 105.
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