On Friday, NIFTY made a Short Black Candlestick Pattern. It was a highly volatile day for the markets. NIFTY witnessed a Gap Up opening of almost 50 points and made a high of 5608.20 for the day. After witnessing a Gap Up, NIFTY could not sustain at the level of 5600 and immediately slipped led by BANKING, INFRA & REALTY, FINANCE, METAL, MINING, AUTO, IT and CAPITAL GOODS Stocks. NIFTY continuously made new low in Intraday trade which gripped the investors into fear again, resulting in low volume trading for the day. For the day, NIFTY made a low of 5524.10. NIFTY tried to maintain the level of 5560 for till the first half of trading session, but during the last hour of trading it dipped swiftly, turning almost every sector in Red. Finally, for the day NIFTY posted a closing of 5538.75.
Net Buying of Rs. 585.52 Crore in Cash Segment and of Rs. 836.77 Crore in F&O Segment by FIIs was witnessed on Friday’s Trading Session.
Net Selling of Rs. 26.67 Crore, of Rs. 78.95 Crore and of Rs. 169.81 Crore was witnessed in Mutual Funds, Proprietory Trading and Other Segments, respectively by FIIs on Friday.
In F&O Segment Net Buying of Rs. 480.66 Crore, of Rs. 376.77 Crore and of Rs. 13.09 Crore was witnessed in Index Options, Stock Futures, and Stock Options, respectively, while, Net Selling of Rs. 33.74 Crore was witnessed in Index Futures Segment.
NIFTY MAR FUTURE ended in a Premium of 9 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 5650 (it also reverted earlier from the high of 5599.25), the 61.80% 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 5650 (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, JAPAN will be coming out with its Leading Economic Index, Coincident Index, Trade Balance – BOP Basis, Current Account and Money Supply (M2+CE) for the month of January. Sentix Investor Confidence for the month of March will be announced by EUROPEAN MONETARY UNION. US will be coming out with its Consumer Credit Change for the month of March.
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 5465.53, but at the same time is still trading below 50-Days SMA and 200-Days SMA of 5651.04 and 5653.94, 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 52.77 and 46.55, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -38.17 and -66.03, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 25.04, -DI: 19.45, ADX: 20.04: 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 5653.94 and 5465.53. Both the Moving Averages are showing Negative Crossover.
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