Yesterday, NIFTY made a Bullish Three Outside Up Candlestick Pattern, which is simply another name for the Confirmed Bullish Engulfing Pattern. The third day is confirmation of the bullish trend reversal, but still a confirmation in the form of a white candlestick with a higher close or a gap-up is suggested. An upside retracement drawn from the low made on 03rd November, 2009 of 4538.50 to the high made on 05th November, 2010 of 6388.50, as drawn on the chart, it can be witnessed that NIFTY completed its retracement fully, and has again reverted. Yesterday, it closed above the 50% retracement level of 5430 at 5456. NIFTY had a Gap Up opening of almost 30-35 points. NIFTY traded very smoothly for whole of the session and moved high and high for the day, by making a high of 5463.80 (almost 150 points). CAPITAL GOODS, CONSUMER DURABLES, TEXTILES, METALS, BANKING, REALTY & INFRA, SHIPPING, OIL & GAS, IT, all the sectors witnessed a good reversal and some of the brutally beaten down stocks witnessed some value buying too. The rally was particularly helped by rally in the Asian Markets, driven by cooling off of Geopolitical Tensions in Egypt. For the day, NIFTY registered a Robust closing of 5456. The Candlestick Pattern made yesterday, signals a pullback in the coming sessions.
Net Buying of Rs. 147.64 Crore in Cash Segment and of Rs. 2579.79 Crore in F&O Segment by FIIs was witnessed on Monday’s Trading Session.
In F&O Segment Net Buying of Rs. 865.76 Crore, of Rs. 683.68 Crore and of Rs. 1057.04 Crore was witnessed in Index Futures, Index Options and Stock Futures, respectively, while, Net Selling of Rs. 26.69 Crore was witnessed in Stock Options.
NIFTY FEB FUTURE ended in a Discount of 0.35 points to the Spot NIFTY.
Technically, NIFTY has completed the Retracements drawn from the low made on 03rd November, 2009 of 4538.50 to the high made on 05th November, 2010 of 6388.50, as drawn on the chart, it can be witnessed that NIFTY completed its retracement fully, and has again reverted. Yesterday, it closed above the 50% retracement level of 5430 at 5456. Earlier, the 20-Days EMA (Exponential Moving Average) crossed the 50-Days SMA (Simple Moving Average) from upside and the Negative Crossover of 20-Days EMA over the 200-Days SMA from reflects more selling pressure in the coming sessions. Now, the NIFTY may witness a pullback till the levels of 5500 and 5550. Currently, 200-Days SMA (Simple Moving Average) of 5629.08 is acting as a good resistance for NIFTY.
On the Economic Front, JAPAN will be coming out with its Industrial Production, Capacity Utilization and Tertiary Industry Index for the month of December, apart from this BoJ (Bank of Japan) will be coming out with its Interest Rate Decision for the month of February. FDI - Foreign Direct Investment, M2 Money Supply, Consumer Price Index and Producer Price Index for the month of January will be announced in CHINA. GERMANY will be coming out with its Q4 Gross Domestic Product, ZEW Survey – Economic Sentiment and Current Situation for the month of February. Consumer Price Index, Retail Price Index for the month of January, DCLG House Price Index and CB Leading Indicator Index for the month of December will be announced in UK. EUROPEAN MONETARY UNION will be coming out with its Q4 Gross Domestic Product, Trade Balance for the month of December and ZEW Survey – Economic Sentiment for the month of February. Import Price Index, Export Price Index, Retail Sales for the month of January, NY Empire State Manufacturing Index, NAHB Housing Market Index and ABC/Washington Post Consumer Confidence for the month of February, Total Net TCI Flows, Net Long-Term TIC Flows and Business Inventories for the month of December will be announced in US.
Q3 2011 Results Season has commenced all over the Globe. In INDIA, TATASTEEL 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 5499.99, 5775.52 and 5629.08, 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 5490 / 5525 / 5560 levels. At the same time, 5420 / 5385 / 5340 will act as major intraday support levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 43.67 and 32.84, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -138.37 and -138.03, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 19.15, -DI: 27.02, ADX: 37.69: 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 5775.52 and 5499.99. Both the Moving Averages are showing Negative Crossover.
Pre - Market Calls:
IVRCLINFRA Buy only if it trades above 73 for the Targets of 77 & 80,with the strict Stop Loss of 72.
On the Daily Charts, IVRCLINFRA has made a Small White Candlestick, with a good spurt in Volume. The stock has been beaten down heavily since last 3-4 month form the levels of 190 to 65. The stock is already trading much lower from its 20-Days EMA (Exponential Moving Average), 50-Days SMA (Simple Moving Average) and 200-Days SMA of 82.84, 108.61 and 150.31, respectively. After the announcement of Q3 FY11 Results, the stock has witnessed some buying interest, with an excellent spurt in Volume since last 6-7 sessions. The stock is facing a small resistance of 73, which it almost touched by making a high of 72.85 yesterday and closed at 72. The 14-Days RSI (Relative Strength Index) is quoting at 29.71 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (12.12) is still below the Negative Directional Index (39.32), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 58.43 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 IVRLINFRA only if it trades above 73 for the Targets of 77 & 80, with the strict Stop Loss of 72.
BAJAJHIND Buy at the levels of 79-80 for the Targets of 84 & 86, with the strict Stop Loss of 78.
On the Daily Charts, BAJAJHIND has made a Small White Candlestick, with a good spurt in Volume. The stock is already trading much lower from its 20-Days EMA (Exponential Moving Average), 50-Days SMA (Simple Moving Average) and 200-Days SMA of 85.38, 101.92 and 114.92, respectively. The stock has witnessed some buying interest, with an excellent spurt in Volume yesterday. The stock is facing a small resistance of 79-80, which it almost touched by making a high of 78.45 yesterday and closed at 78.05. The 14-Days RSI (Relative Strength Index) is quoting at 35.37 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (17.06) is still below the Negative Directional Index (34.52), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 42.29 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 BAJAJHIND at the levels of 79-80 for the Targets of 84 & 86, with the strict Stop Loss of 78.
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