On Friday, NIFTY made a Long Black Candlestick Pattern. NIFTY tried to engulf its previous day’s candle, but could not even cross its PSAR (Parabolic Support & Resistance) of 5556. It only touched it by making a high of 5556.30. Markets could not sustain the previous day’s Short Covering. An upside retracement from the level of 4920 to 6388 has been drawn on the chart, in which it can be witnessed that NIFTY even touched its 38.20% retracement level of 5379, and made an intraday low of 5369.05. NIFTY had a flat opening of almost 20-25 points in the positive territory. But after half an hour of the opening, NIFTY first dipped almost 20-25 points in negative territory and again bounced back in positive zone and made a high of 5556.30 (almost 35 points in the positive zone). But after kissing the day’s high, NIFTY again moved southwards and dipped almost 150 points for the day by making a low of 5369.05. A massive selloff was witnessed in AUTO, METALS, REALTY & INFRA, BANKING & FINANCE, CAPITAL GOODS, TEXTILES, FERTILIZER and SHIIPING Stocks. Finally, after breaching an important psychological level of 5400, NIFTY closed at 5395.75.
Net Buying of Rs. 144.04 Crore in Cash Segment and of Rs. 847.06 Crore in F&O Segment by FIIs was witnessed on Friday’s Trading Session.
In F&O Segment Net Buying of Rs. 940.87 Crore, of Rs. 309.17 Crore and of Rs. 3.19 Crore was witnessed in Index Options, Stock Futures and Stock Options, respectively, while, Net Selling of Rs. 406.88 Crore was witnessed in Index Futures.
NIFTY FEB FUTURE ended in a Discount of 8.75 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 level of 5370 is 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) for continuously four trading sessions, finally on the last trading session also breached the level of 38.20% (5380), by making a low of 5369.05. 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 5626 is acting as a good resistance for NIFTY.
On the Economic Front, AUSTRALIA will be coming out with its ANZ Job Advertisements for the month of January and Retail Sales Trend for the month of December. Coincident Index, Leading Economic Index Adjusted Current Account, Money Supply M2+CD and Trade Balance – BOP Basis for the month of December will be announced in JAPAN. EUROPEAN MONETARY UNION will be announcing its Sentix Investor Confidence for the month of February. Factory Orders for the month of December will be announced in GERMANY. US will be coming out with its Consumer Credit for the month of December.
Q3 2011 Results Season has commenced all over the Globe. In INDIA, ANATRAJIND, BAJAJHIND, BFUTILITIES, INGERSOLL RAND, PUNJLLOYD, LITL, MUNDRAPORT, NAGARFERT and HOCL will be posting their Quarterly Numbers today. In US, Cognizant Technology Solutions Corp. 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 5641, 5841 and 5626, 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 5420 / 5450 / 5485 levels. At the same time, 5370 / 5350 / 5320 will act as major intraday support levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 31.20 and 29.07, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -127.80 and -106.30, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 12.45, -DI: 22.33, ADX: 26.83: 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 5841 and 5641. Both the Moving Averages are showing Negative Crossover.
No comments:
Post a Comment