On Friday, NIFTY made a White Opening Marubozu Candlestick Pattern, which represents that it was a typical bull day and strength of the bulls is enough to cause some concern among the bears. NIFTY had a very flat opening with the positive bias of 2-3 points and maintained its uptrend till the end of the trading session. It was a Green Day for the markets, METALS, BANKING & FINANCE, REALTY & INFRA and OIL & GAS Sector Stocks. Index Constituents stocks gained almost 6-7% for the day. NIFTY continuously kept on crossing its intraday resistances and made a High of 5485.80 for the day, but at the same time was not able to touch the level of 5500. The up move was particularly led by the Short Covering. For the day, NIFTY ended at 5476.10.
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 has also completed another longer Extension Level drawn from the Low of 4786.45 (25th May, 2010) to the High of 6335.90 (08th November, 2010). Earlier, a Negative Crossover was witnessed between 200-Days SMA and 20-Days EMA. The Negative Crossover of 20-Days EMA (Exponential Moving Average) and the 50-Days SMA (Simple Moving Average) will now lead to more southward movement in NIFTY. 20-Days EMA is acting as a Short Term Resistance for NIFTY right now, whereas the level of 5320 proved to be a Good Support. A technical bounce till the level of 5620 is expected in NIFTY, which will be supported by BANKING & FINANCE and REALTY & INFRA Sector Stocks.
On the Economic Front, JAPAN will be coming out with its Construction Orders, Annualized Housing Starts, Housing Starts, Unemployment Rate, Overall Household Spending and Industrial Production for the month of April and also with Nomura/JJMA Manufacturing Purchasing Manager Index for the month of May.
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. ABGSHIP, ABIRLANUVO, BPCL, CENTRALBNK, CUMMINSIND, DBREALTY, DREDGCORP, EDUCOMP, EIH, FCS, GMRINFRA, GODREJIND, GMDC, HINDALCO, INDIACEM, IOC, IGL, M&M, MCLEODRUSS, NATIONALUM, NAGARFERT, NCC, NIRMA, OILINDIA, ONGC, PARSVANATH, PUNJLLOYD, RAJESHEXPO, RELCAPITAL, RCOM, SCI, TV-18, and TVTODAY 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 5501.50, 5754.47 and 5634.21, 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 45.72 and 39.45, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -125.34 and -130.09, respectively. A negative crossover is indicated by both the Moving Averages.
3. +DI: 20.20, -DI: 25.66, ADX: 27.43: 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 5754.47, 5634.21 and 5501.50.
Some Trading Stats of the Friday’s (27th May, 2011) Trading Session:
Net Buying of Rs. 222.03 Crore in Cash and of Rs. 205.69 Crore in F&O Segment by FIIs was witnessed on Friday’s Trading Session.
Net Selling of Rs. 106.82 Crore and of Rs. 2211.42 Crore was witnessed in Mutual Funds and Others Segment, whereas, Net Buying of Rs. 2112.55 Crore was witnessed in Proprietory Trades.
In F&O Segment Net buying Rs. 986.17 Crore, of Rs. 1650.55 Crore, of Rs. 260.38 Crore and of Rs. 4.19 Crore was witnessed in Index Futures, Index Options, Stock Futures and Stock Options Segment, respectively.
A brief on some of the NIFTY 50 Stocks for TOMORROW:
AXISBANK: Can move to the levels of 1235/1245.
BHARTIARTL: Can move to the levels of 382/385, if crosses the level of 375.
BHEL: Can move to the levels of 1960/1970, if crosses the level of 1945.
DLF: Can move to the levels of 230/232.
HDFCBANK: Can move to the levels of 2330/2340
HINDALCO: Can move to the levels of 202/204, if crosses the level of 198.
ICICIBANK: Can move to the levels of 1090/1100, if crosses the level of 1070.
JPASSOCIAT: Can move to the levels of 84.20, if crosses the level of 82.60.
KOTAKBANK: Can move to the levels of 445/450.
RCOM: Can move to the levels of 88/89, if crosses the level of 85.
For the day, intraday resistance for NIFTY comes at 5490 / 5520 / 5550 levels. At the same time, 5450 / 5420 / 5375 will act as major intraday support levels.
For the week, resistance for NIFTY comes at 5550 & 5620 levels. At the same time, 5320 & 5250 will act as major support levels.
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