Yesterday, NIFTY made a Short White Candlestick Pattern. NIFTY witnessed a very flat positive opening of almost 8-12 points, and it immediately slipped into red making a day’s low of 5525. It was the third consecutive session of Consolidation in the markets. Markets traded in the range of just 15 points throughout the day. Market is awaiting a trigger to decide its further direction. It was a quite sluggish session for the markets. For the day, NIFTY made a high of 5574.70 and closed near the day’s high at 5565.05.
Technically, NIFTY has completed the southward movement of Fibonnaci Retracement drawn from the High of 6338.50 (08th November, 2010) to the Low of 5177.70 (11th February, 2011). NIFTY faced the resistance placed at 28.60% Retracement level (5893.47) and found the support at the 63.80% Retracement level of 5450 by making a low of 5443.65. After crossing all the retracements successfully, it again is getting reverted from its important support 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. NIFTY has breached the upper trendline (marked as 2) of this channel earlier, but on Friday it gained almost 90 points taking the support of the lower trendline (marked as 1) of the same channel. 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. The same crossover can be expected between 20-Days EMA and 50-Days SMA. If this time NIFTY did not take the support of 5450 and reverted, it may test the previous lows of 5370 and 5180 too. This time selling pressure is more witnessed due to Sentimental Reasons, continuous Net Outflow from the FIIs since last five-six trading sessions, and deep correction in the stocks prices in a minimal time. 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 Eco Watchers Survey both Outlook and Current for the month of April, Machine Tool Orders for the month of April. Manufacturing Production and Industrial Production for the month of March will be announced in UK. EUROPEAN MONETARY UNION will be coming out with its Industrial Production for the month of March. Producer Price Index, Retail Sales and NIESR GDP Estimate for the month of April, Initial Jobless Claims, Continuing Jobless Claims and Business Inventory for the month of March 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. INDIA will be announcing its IIP Data (Index of Industrial Production) for the month of July.
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. ADANIENT, COALINDIA, FCH, GTOFFSHORE, JINDALSAW, JUBLFOOD, LITL, LUPIN, MOSERBAER, MTNL, SIEMENS and SYNDIBANK, will be announcing their Q4 FY11 Results tomorrow in INDIA.
NIFTY is trading below its 20-Days EMA, 200-Days SMA and 50-Days SMA of 5658.14, 5753.83 and 5641.16, 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.
Indicators have reached their Oversold Region that too in very less time, so a sharp pullback can also be expected in the next few trading sessions, if NIFTY continuous to trade above the level of 5450.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 41.78 and 42.23, respectively, showing a positive crossover.
2. MACD (26 Days & 12 Days): Their Values are -110.45 and -41.22, respectively. a positive crossover is indicated by both the Moving Averages.
3. +DI: 15.45, -DI: 28.03, ADX: 25.18: 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 5753.83, 5641.16 and 5658.14.
Some Trading Stats of the Wednesday’s (11th May, 2011) Trading Session:
Net Buying of Rs. 125.07 Crore in Cash and of Rs. 138.05 Core in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.
Net Selling of Rs. 711.04 in Proprietory Trades and of Rs. 247.86 Crore in Others Segment, whereas, Net Buying of Rs. 50.34 Crore was witnessed in Mutual Funds and Others Segment, respectively by FIIs on Wednesday.
In F&O Segment Net buying of Rs. 21.75 Crore, of Rs. 255.59 Crore and of Rs. 3.20 Core was witnessed in Index Futures, Stock Futures and Stock Options Segment, respectively, whereas, Net Selling of Rs. 142.48 Crore was witnessed in Index Options Segment.
NIFTY MAY FUTURE ended in a Discount of 0.40 points to the Spot NIFTY.
A brief on some of the NIFTY 50 Stocks for TOMORROW:
SBIN: Can touch the levels of 2715.
RANBAXY: Can touch the levels of 494/498, if moves above the level of 480.
SUNPHARMA: Can touch the levels of 440/443.
IDFC: Can dip to the levels of 129/128, if breaches the level of 133.
MARUTI: Can dip to the levels of 1200/1190, if breaches the level of 1220.
LT: Can dip to the levels of 1495/1480, if breaches the level of 1520.
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