Yesterday, NIFTY made a Black Candlestick Pattern. NIFTY had a positive opening with almost 15-20 points in Green. Immediately after opening, NIFTY touched the high of 5509.30 for the day. The markets displayed extreme volatility since then and within a few minutes became completely flat for the day. The indices even broke below the equatorial and fell to hit intraday lows. Trading range-bound in the red terrain for an hour, the indices made an attempt at reaching for the green zone. However, selling pressure pushed it lower. Till the closing bell, the bourses kept wandering between the positive and negative terrains. NIFTY was unsuccessful in crossing the level of 5500 on the closing basis, it could not even maintained above that level for whole of the trading session. NIFTY maintained its full volatility but in a very tight trading range. PHARMA Sector Stocks along with REALTY & INFRA Sector Stocks were trading in Green. Other than this, METAL and some of the BANKING & FINANCE Stocks kept the Greenery in the market. For the day, NIFTY ended at 5473.10.
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 Labor Cash Earnings, Construction Orders, Annualized Housing Starts and Housing Starts for the month of April. Retail Sales for the month of April and Unemployment Rate for the month of May will be announced in GERMANY. EUROPEAN MONETARY UNION will be coming out with Unemployment Rate and Consumer Price Index for the month of April. S&P/Case-Shiller Home Price Indices for the month of March, Chicago Purchasing Manager’s Index and Consumer Confidence for the month of May 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. BEML and STERLINBIO 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 5498.80, 5754.73 and 5633.45, 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 45.51 and 40.66, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -110.60 and -126.19, respectively. A negative crossover is indicated by both the Moving Averages.
3. +DI: 21.36, -DI: 24.52, ADX: 25.96: 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 5754.73, 5633.45 and 5498.80.
Some Trading Stats of the Monday’s (30th May, 2011) Trading Session:
Net Buying of Rs. 253.48 Crore in Cash while Net Selling of Rs. 455.67 Crore in F&O Segment by FIIs was witnessed on Monday’s Trading Session.
Net Selling of Rs. 11.69 Crore and of Rs. 3453.06 Crore was witnessed in Mutual Funds and Others Segment, whereas, Net Buying of Rs. 563.46 Crore was witnessed in Proprietory Trades.
In F&O Segment Net Selling of Rs. 224.95 Crore, of Rs. 221.45 Crore, of Rs. 9.17 Crore and of Rs. 0.10 Crore was witnessed in Index Futures, Index Options, Stock Futures and Stock Options Segment, respectively.
NIFTY JUN FUTURE ended at a Discount of 6,25 Points to NIFTY Spot.
A view on some of the NIFTY 50 Stocks for TOMORROW:
AXISBANK: Can move to the levels of 1260/1270.
CIPLA: Can move to the levels of 338/340.
RANBAXY: Can move to the levels of 550/552.
SUNPHARMA: Can move to the levels of 472/475, if crosses the level of 465.
AMBUJACEM: Can dip to the levels of 131/130, if breaches the level of 134.
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.
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