Yesterday, NIFTY made a Long Black Candlestick, with a longer lower shadow, due to which the Candle is appearing as Bullish Hammer Candlestick. NIFTY witnessed a muted opening in the negative terrain of almost 20-25 points, but it immediately dipped to almost 50 points negative for the day, led especially by AUTO, METAL, REALTY & INFRA and BANKING & FINANCE Stocks. Market Sentiments were hurt by yesterday’s RBI’s Hawkish Credit Policy and due to withdrawal of DEPB Scheme. NIFTY made a low of 5503.00 for the day, almost kissing a Crucial Support level of 5500. But immediately after kissing day’s low, NIFTY bounced back a bit and continued to trade in a tight range of 15 points till the last 45 minutes of trading session. A good bounce or say covering was witnessed in the Markets and the beaten down sectors from morning which led NIFTY to the day’s high of 5578.80. But NIFTY just kissed the intraday high and reverted back to the levels of 5530 within couple of minutes. For the day, NIFTY closed at 5537.15.
Technically, NIFTY is again reverting from the resistance placed at 28.60% Retracement level (5893.47) and yesterday it also breached the 50.00% Retracement level of 5620 by making a low of 5554.85 and closing at 5565.25. If a look at chart is taken a Downward Fibonacci Retracement has been drawn from the High of 6338.50 (08th November, 2010) to the Low of 5177.70 (11th February, 2011). After crossing all the retracements successfully, now it is again reverting from its important resistance levels. NIFTY has also breached the channel formation on the charts, where a trendline is dropped from the high of 5556.30 made on 04th February, 2011 to the higher highs made later on and the lower trendline drawn from the low of 5177.70 made on 11th February, 2011 to the higher lows made consecutively. The convergence of 20-Days EMA (Exponential Moving Average) and the 50-Days SMA (Simple Moving Average) turned into a Negative Crossover yesterday, as 20-Days EMA crossed the 200-Days SMA from upside, signaling a selloff in the markets. Now, the level of 5450 is acting as a Strong Support on the Closing Basis for NIFTY, whereas the level of 5800 is acting as a crucial Resistance on the Closing Basis.
On the Economic Front, JAPAN will be coming out with its Monetary Base for the month of April. UK will be coming out with its Halifax House Prices and Purchasing Manager Index Services for the month of April, along with the BoE (Bank of England) Interest Rate Decision. Factory Orders for the month of March will be announced in GERMANY. EUROPEAN MONETARY UNION will also be coming out with ECB (European Central Bank’s) Interest Rate Decision. Initial Jobless Claims, Nonfarm Productivity and Unit Labor Cost for Q1 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 make Fresh Investments at this point of time in the Markets in the stocks heavily beaten down with the Averaging Principle.
Q4 FY11 Results Season is running all over the Financial World. Hence, here is a quick look at some important results to be announced domestically and internationally. ANDHRABANK, BHARTIARTL, CANBK, CIPLA, KOTAKBANK, MIRC ELECTRONICS and ZYDUS WELLNESS will be announcing their Q4 FY11 Results tomorrow in INDIA. Vedanta Resources PLC will be coming out with its Q1 FY11 Results in UK. Adidas AG and Heidelbergcement AG will be coming out with their Q1 FY11 Results in GERMANY. Lafarge SA and Societe Generale will be coming out with their Q1 FY11 Results in FRANCE. General Motors Co, Dominos Pizza Inc, Visa Inc and Kraft Foods Inc will be coming out with their Q1 FY11 Results in US.
NIFTY is trading below its 20-Days EMA, 200-Days SMA and 50-Days SMA of 5736.43, 5750.71 and 5630.72, respectively on the Closing Basis. MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) are signaling a bit of more selling pressure to come in.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 36.15 and 47.62, respectively, showing a positive crossover.
2. MACD (26 Days & 12 Days): Their Values are -32.42 and 47.60, respectively. a positive crossover is indicated by both the Moving Averages.
3. +DI: 18.53, -DI: 34.41, ADX: 22.32: 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 (200 Days), SMA (50 Days) & EMA (20 Days): The values of these indicators are 5750.71, 5630.72 and 5736.43.
For the day, intraday resistance for NIFTY comes at 5550 / 5585 / 5650 levels. At the same time, 5500 / 5480 / 5450 will act as major intraday support levels.
Some Trading Stats of the Wednesday’s (04th May, 2011) Trading Session:
Net Selling of Rs. 992.14 Crore in Cash and of Rs. 250.09 Crore in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.
Net Selling of Rs. 2950.25 Crore in Proprietory Trades Segment, whereas, Net Buying of Rs. 394.55 Crore and of Rs. 3230.38 Crore was witnessed in Mutual Funds and Others, respectively by FIIs on Wednesday.
In F&O Segment Net Selling of Rs. 611.47 Crore and of Rs. 171.84 Crore was witnessed in Index Futures and Stock Futures, respectively, whereas, Net buying of Rs. 519.97 Crore and of Rs. 13.25 Crore was witnessed in Index Options and Stock Options Segment, respectively.
NIFTY MAY FUTURE ended in a Premium of 0.90 points to the Spot NIFTY.
A brief on some of the NIFTY 50 Stocks for TOMORROW:
ACC: Can dip to the levels of 1010/1000.
AMBUJACEM: Can dip to the levels of 139/138.
BAJAJ-AUTO: Can dip to the levels of 1275/1265, if breaches the level of 1300.
GRASIM: Can dip to the levels of 2320/2300, if breaches the level of 2350.
HDFC: Can dip to the levels of 645/640, if breaches the level of 660.
SESAGOA: Can dip to the levels of 292/290, if breaches the level of 300.
TATASTEEL: Can dip to the levels of 580/575, if breaches the level of 588.
ONGC: Can touch the levels of 320/322, if moves above the level of 312.
No comments:
Post a Comment