Yesterday, NIFTY made a Long Black Candlestick Pattern, which engulfed the day before yesterday’s candle completely (not only the body but also even the shadows of the candle). Yesterday’s candle also represents the formation of a Black Opening Marubozu Candlestick. An upside retracement from the level of 4920 to 6388 has been drawn on the chart, in which it can be witnessed that NIFTY has closed even below its 50% retracement level, which signals that the bears have made a strong grip in the markets. NIFTY had a muted opening of 25-30 points in the positive territory and made a high of 5539.15. Immediately after making the high which was almost at the same level of opening of 5537.30, NIFTY again started slipping for the day by dipping firstly 68 points for the day. The selling was triggered by every sector may it be OIL, BANKING & FINANCE, CAPITAL GOODS, METALS, AUTO or REALTY & INFRA. Till the second half of trading session, markets hold a bit, but could not invite even a bit of covering. After the opening of the European Markets, NIFTY again lost its hold and dipped swiftly, hammering the already beaten down sectors again. NIFTY almost kissed its crucial support of 5400 by making a low of 5402 (almost 100 points negative) for the day. In the last hour of trading session, NIFTY recovered a bit and remained only 65 points negative but immediately slipped off and finally ended at 5417.20 for the day. REALTY & INFRA Stocks again dipped almost 6%-12% for the day again, some of them even made their new 52-Week Low.
Net Selling of Rs. 1036.80 Crore in Cash Segment while Net Buying of Rs. 1735.16 Crore in F&O Segment by FIIs was witnessed on Tuesday’s Trading Session.
In F&O Segment Net Buying of Rs. 729.73 Crore, of Rs. 1022.40 Crore and of Rs. 3.12 Crore was witnessed in Index Futures, Index Options and Stock Futures, respectively, while, Net Selling of Rs. 20.08 Crore was witnessed in Stock Options.
NIFTY FEB FUTURE ended with a Premium of 11.95 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. The levels of 5400 and 5375 are still acting as Strong Support for NIFTY (on the closing basis). NIFTY after closing below the 50% Retracement level (drawn from 4920 to 6388), signals a cautious approach towards the market and may also touch the level of 38.20% (5375). Now if NIFTY closes above 5500 for 2-3 sessions consecutively, it may witness a pullback till the levels of 5620 and 5700. Currently, 200-Days SMA (Simple Moving Average) of 5624.15 is acting as a good resistance for NIFTY.
On the Economic Front, AUSTRALIA will be coming out with its HIA New Home Sales and AiG Performance of Services Index for the month of December. PMI Construction for the month of January will be announced in UK. EUROPEAN MONETARY UNION will be coming out with its Producer Price Index for the month of December. MBA Mortgage Applications and ADP Employment Change will be announced in US.
Q3 2011 Results Season has commenced all over the Globe. In INDIA, BHARTIARTL, ESSARSHIP, GLAXO, HEROHONDA, JAICORP, JETAIRWAYS, VOLTAS and WOCKHARDT will be posting their Quarterly Numbers today. In US, TIME WARNER INC. 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.
NIFTY is now trading below its 20-Days EMA (Exponential Moving Average), 50-Days SMA (Simple Moving Average) and 200-Days SMA of 5707.68, 5869.91 and 5624.15, respectively. 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 5430 / 5480 / 5520 levels. At the same time, 5400 / 5375 / 5340 will act as major intraday support levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 26.62 and 33.58, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -117.60 and -89.74, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 11.58, -DI: 33.07, ADX: 31.97: The Negative Directional Index has gained strength over the Positive 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 5869.91 and 5707.68. Both the Moving Averages are showing Negative Crossover.
No comments:
Post a Comment