Yesterday, NIFTY made a Small Black Candlestick Pattern. 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 gap up opening of almost 45-50 points. Till the second half of trading session NIFTY traded range bound in the positive territory. But after the opening of European Markets, NIFTY again steamed up to make a new high for the day, which was at 5490.60, with OIL, REALTY & INFRA and METALS Stocks witnessing a good Short Covering of almost 4%-8%. But the shine of the market could not sustain till the end, as it was only due to short covering. As NIFTY had a Gap Up Opening, to fill that Gap it again dipped losing all its gain of the day and entering into negative territory. Selling was mainly led by CAPITAL GOODS Sector Stocks. Finally, for the day NIFTY ended the session at 5432.
Net Selling of Rs. 81.73 Crore in Cash Segment while Net Buying of Rs. 1796.35 Crore in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.
In F&O Segment Net Buying of Rs. 963.24 Crore, of Rs. 272.80 Crore and of Rs. 574.78 Crore was witnessed in Index Futures, Index Options and Stock Futures,respectively, while, Net Selling of Rs. 14.48 Crore was witnessed in Stock Options.
NIFTY FEB FUTURE ended neck to neck to the Spot NIFTY.
Technically, whenever Market witnesses a Gap Up or Gap Down Opening, it always covers that Gap in intraday, the same was observed yesterday too. NIFTY witnessed a Gap Up opening and it filled that Gap by dipping to the day’s low, losing all its sheen of the day. 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 very 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 5624.97 is acting as a good resistance for NIFTY.
On the Economic Front, AUSTRALIA will be coming out with its Building Permits and Trade Balance for the month of December. Purchasing Manager Index Services for the month of January will be announced in GERMANY. EUROPEAN MONETARY UNION will be announcing its Purchasing Manager Index Services for the month of January, Retail Sales for the month of December and also the ECB (European Central Bank) will be announcing its Interest Rate Decision for the month of February. Purchasing Manager Index Services for the month of January will be announced in UK. US will be coming out with its Initial Jobless Claims, Continuing Jobless Claims, Q4 Nonfarm Productivity and Unit Labor Cost, Factory Orders for the month of December and ISM Non-Manufacturing for the month of January.
Q3 2011 Results Season has commenced all over the Globe. In INDIA, ABHISHEK, ACC, AMBUJACEM, CUMMINSIND, ENGINEERSIN and WHIRLPOOL will be posting their Quarterly Numbers today. In UK, BT GROUP PLC and GLAXOSMITHKLINE PLC will be posting their Quarterly Numbers today. In GERMANY, DEUTSCHE BANK will be posting its Quarterly Numbers today. In US, BLACKSTONE GROUP PLC. 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 5681.42, 5858.35 and 5624.97, 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 5450 / 5480 / 5510 levels. At the same time, 5400 / 5375 / 5350 will act as major intraday support levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 28.09 and 32.48, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -124.73 and -94.72, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 10.98, -DI: 31.36, ADX: 33.13: 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 5858.35 and 5681.42. Both the Moving Averages are showing Negative Crossover.
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