Yesterday, NIFTY made a White Candlestick Pattern; which appears as a White Opening Marubozu Candlestick. The day before, NIFTY made a Bullish Hammer Candlestick Pattern, which would have got confirmed by a white candlestick, a large gap up or a higher close on the next trading day. NIFTY witnessed a muted Opening of almost 25 points in green. Markets witnessed a rally of almost 50 points due to a bit of cool off in prices of Crude. Sectors like, IT, REALTY, BANKING, TEXTILE, AVIATION, OMCs, METAL and MINING led to run up in the markets to the day’s high of 5530.55. It may be said that NIFTY made a high to cover up the Gap it made the day before. Index Constituents witnessed a positive movement both at the beginning and ending hours of the trading session. Markets were majorly buoyed by Crude Prices and Rising Dollar. Stocks which took a deep cut the day before, witnessed a good comeback, signaling an instant Short Covering in them. Finally, for the day NIFTY posted a closing of 5463.15. Still it left a cautious note for the next trading session, as it closed below the day before yesterday’s closing.
Net Buying of Rs. 237.07 Crore in Cash Segment while Net Selling of Rs. 127.33 Crore in F&O Segment by FIIs was witnessed on Tuesday’s Trading Session.
In F&O Segment Net Buying of Rs. 418.18 Crore was witnessed in Index Futures, while, Net Selling of Rs. 465.40 Crore, of Rs. 61.23 Crore and of Rs. 18.87 Crore was witnessed in Index Options, Stock Futures and Stock Options Segment, respectively.
NIFTY MAR FUTURE ended in a Premium of 16.35 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. Yesterday, NIFTY moved up to the day’s high to cover up the Gap it made the day before. It can be witnessed in the Chart, the day before too NIFTY pulled up at the end and closed above the lower trendline and is maintaining above the upper trendline. 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 reflects more selling pressure in the coming sessions. Even, the 50-Days SMA has signaled a negative crossover by crossing 500-Days SMA from upside, hence showing more selling pressure to creep in. Now, the NIFTY may witness a pullback till the levels of 5580 and 5630. 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 Domestic Corporate Goods Price Index and Gross Domestic Product Deflator for the month of February and Q4 Gross Domestic Product. BRC Shop Price Index for the month of February and Gross Domestic Balance for the month of January will be announced in UK. GERMANY will be coming out with its Industrial Production for the month of January. MBA Mortgage Applications and Wholesale Inventories 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 below its 20-Days EMA, but on the other hand, is still below the 50-Days SMA and 200-Days SMA of 5470.58, 5630.89 and 5660.11, 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 51.65 and 47.84, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -26.47 and -57.11, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 24.55, -DI: 23.86, ADX: 17.64: 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 5630.89 and 5470.58. Both the Moving Averages are showing Negative Crossover.
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