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 touched its 38.20% retracement level of 5379 again by making a low of 5376.95. NIFTY had a flat opening of almost 20-25 points in the positive territory and it traded range bound for whole of the trading session in the range of 5400 to 5420. After testing the resistance for at least three times, NIFTY crossed it in the last hour of trading session and made a high of 5440.35 for the day. Immediately after touching the day’s high NIFTY reverted again and made a swift low of 5376.95. PHARMA and IT Stocks witnessed a good selloff. Finally, for the day NIFTY ended at 5396 (almost neck to neck of Friday’s Closing), thus leaving not much clue for the next trading session.
Net Selling of Rs. 65.47 Crore in Cash Segment, while, Net Buying of Rs. 522.94 Crore in F&O Segment by FIIs was witnessed on Monday’s Trading Session.
In F&O Segment Net Buying of Rs. 132.34 Crore, of Rs. 65.20 Crore, of Rs. 314.76 Crore and of Rs. 10.64 Crore was witnessed in Index Futures, Index Options, Stock Futures and Stock Options, respectively.
NIFTY FEB FUTURE ended in a Discount of 1.95 points to the Spot NIFTY.
Technically, NIFTY has completed the Retracements drawn from the level of 4920 to 6388, but still it has not given a closing below its Crucial Support of 5370. Earlier, the 20-Days EMA (Exponential Moving Average) crossed the 50-Days SMA (Simple Moving Average) from upside and yesterday the 20-Days EMA has also crossed the 200-Days SMA from upside, hence, reflecting a Negative Crossover. 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 Westpac Consumer Confidence for the month of February. BRC Retail Sales Monitor and RICS House Price Balance for the month of January will be announced in UK. GERMANY will be announcing its Retail Sales and Industrial Production for the month of December. IBP/TIPP Economic Optimism for the month of February and also ABC/Washington Post Consumer Confidence will be announced in US.
Q3 2011 Results Season has commenced all over the Globe. In INDIA, HANUNG, POWERGRID, ADANIPOWER, EVERONN, BEML, PIDILITEIND and RCF will be posting their Quarterly Numbers today. In US, McDonald’s Corp, Sara Lee Corp. and Walt Disney Co. 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.
NIFTY is now trading below its 20-Days EMA (Exponential Moving Average), 50-Days SMA (Simple Moving Average) and 200-Days SMA of 5617.57, 5832.71 and 5626.89, 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 5425 / 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 31.22 and 32.58, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -131.30 and -110.04, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 10.93, -DI: 27.35, ADX: 34.77: 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 5832.71 and 5617.57. Both the Moving Averages are showing Negative Crossover.
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