Yesterday, NIFTY made a Long White Candlestick Pattern, with a longer upper shadow. It was a highly volatile day for the markets. It may be said that, it was a total new driven movement for NIFTY yesterday. NIFTY witnessed a Gap Down opening of almost 50 points. BANKING, FINANCE, METAL, MINING, AUTO, IT and CAPITAL GOODS Stocks registering a weak opening for the day. After making a low of 5468.25 immediately after opening, NIFTY recovered a bit but kept trading with southward bias. After the acceptance of Peace Plan by the Libyan leader Gaddafi to end crisis in Libya, NIFTY bounced back from the day’s low and turned positive, making a high of 5570.75 for the day. Positive move was witnessed all over the counter, not even a single sector was left in red. Then again after the negative news flow in Libya, NIFTY slipped in the red, but did not breach its day’s low made at the time of opening. Finally, for the day NIFTY posted a closing of 5536.20.
Net Buying of Rs. 229.02 Crore in Cash Segment and of Rs. 1165.95 Crore in F&O Segment by FIIs was witnessed on Thursday’s Trading Session.
In F&O Segment Net Buying of Rs. 200.19 Crore, of Rs. 1445.61 Crore and of Rs. 51.45 Crore was witnessed in Index Futures, Index Options and Stock Options, respectively, while, Net Selling of Rs. 531.29 Crore was witnessed in Stock Futures Segment.
NIFTY MAR FUTURE ended in a Premium of 17.65 points to the Spot NIFTY.
Technically, NIFTY is trading below the Retracements drawn from the high of 6338.50 to the low 5177.70, as drawn on the chart. It can be witnessed that NIFTY faces its resistance at 5620 (it also reverted earlier from the high of 5599.25), THE 38.20% Retracement Level. Earlier, the 20-Days EMA 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. Even, the 50-Days SMA is now signaling a negative crossover to be formed in the coming days by crossing 500-Days SMA from upside. Now, the NIFTY may witness a pullback till the levels of 5600 and 5640 (on closing basis). On the other hand, the level of 5400 is acting as a Strong Support on the Closing Basis for NIFTY.
On the Economic Front, UK will be coming out with its Halifax House Prices for the month of February. Nonfarm Payrolls, Average Hourly Earnings, Average Weekly Hours and Unemployment Rate for the month of February and also Factory Orders for the month of January will be announced in US.
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 trading well above its 20-Days EMA of 5457.82, but at the same time is still trading below 50-Days SMA and 200-Days SMA of 5659.96 and 5650.91, respectively. MACD (Moving Average Convergence Divergence) is still signaling a bit of more selling pressure to come in, but at the same time, RSI (Relative Strength Index) has turned northbound.
For the day, intraday resistance for NIFTY comes at 5550 / 5580 / 5620 levels. At the same time, 5500 / 5465 / 5420 will act as major intraday support levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 52.63 and 44.99, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -50.12 and -71.24, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 23.99, -DI: 20.50.83, ADX: 20.62: 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 5659.96 and 5457.82. Both the Moving Averages are showing Negative Crossover.
On the Daily Charts, PUNJLLOYD has made a Long White Candlestick with a good spurt in Volume. The candle has also engulfed the previous candle completely in it. It may be said that the stock has witnessed a Value Buying after beaten down brutally. Yesterday, the stock made a high of 67.10 and closed at 66.25. The stock is now facing a small resistance at the level of 67. A good spurt in Volume was witnessed in the last hour of Trading Session yesterday in the stock, hence it is expected that the positive movement in the stock will continue on the next trading session too. The 20-Days EMA (Exponential Moving Average), 50-Days SMA (Simple Moving Average) and 200-Days SMA (Simple Moving Average) are quoting at 72.12, 90.62 and 114.47, respectively of the stock. The 14-Days RSI (Relative Strength Index) is quoting at 36.40 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (13.29) is still below the Negative Directional Index (36.18), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 36.18 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 PUNJLLOYD only if it trades above 67 for the Targets of 70 & 72, with the strict Stop Loss of 66.
RENUKA Buy only if it trades above 77 for the Targets of 80 & 82,with the strict Stop Loss of 76.
On the Daily Charts, RENUKA has made a Long White Candlestick with a good spurt in Volume. The candle has also engulfed the previous candle completely in it. The stock has also given a Short term trendline breakout on the closing basis. Yesterday, the stock made a high of 76.90 and closed at 76.60. The stock is now facing a small resistance at the level of 77. A good spurt in Volume was witnessed in the last hour of Trading Session yesterday in the stock, hence it is expected that the positive movement in the stock will continue on the next trading session too. The 20-Days EMA (Exponential Moving Average), 50-Days SMA (Simple Moving Average) and 200-Days SMA (Simple Moving Average) are quoting at 79.72, 87.17 and 78.81, respectively of the stock. The 14-Days RSI (Relative Strength Index) is quoting at 42.67 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (15.41) is still below the Negative Directional Index (26.01), ADX (Average Directional Index) has gained strength on the Intraday Charts and is quoting at 22.11 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 RENUKA only if it trades above 77 for the Targets of 80 & 82, with the strict Stop Loss of 76.
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