On Friday, NIFTY made a Black Candlestick, with a short body but a longer lower shadow, which reflects that the market was trading with a southward bias for whole of the trading session, but managed to close with a smart covering. NIFTY witnessed a muted opening in the negative terrain of almost 2-5 points and continued to slip in the early hour of trading, creating a panic among the traders. Selling was first witnessed in IT and METAL Sector. After witnessing a deep cut in the early hour of trade, markets traded range-bound but with negative bias till the opening of the European Markets. In this duration, a deep cut was witnessed in the REALTY & INFRA Sector along with IT and METAL Stocks. But after an hour about, NIFTY slipped into red with REALTY & INFRA, BANKING & FINANCE, AUTO, IT, CAPITAL GOODS and METAL Sector leading the downfall. NIFTY witnessed a downfall of almost 98 points from its day’s high of 5804.30. It made a low of 5706.05 for the day. Selling was mainly due to panic among the traders about the Forthcoming RBI Policy Meet, in which key interest rates are expected to rise. There was no other reason behind Friday’s Selling Pressure. In the last half an hour NIFTY witnessed a smart recovery of almost 45 points from the day’s low and managed to close at 5749.50. A good recovery was witnessed in BANKING & REALTY, AUTO and METAL Stocks.
Technically, NIFTY is again reverting from the resistance placed at 28.60% Retracement level (5893.47). 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 its again reverting from its important resistance level. 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. Earlier, the 20-Days EMA crossed the 50-Days SMA (Simple Moving Average) from downside and the Positive Crossover of 20-Days EMA over the 200-Days SMA also reflected an upside in the markets. But at the same time, even after making consecutive lower lows and closing down day-by-day, NIFTY is maintaining well above the crucial support of its 200-Days SMA. Now, the level of 5600 is acting as a Strong Support on the Closing Basis for NIFTY, whereas the level of 5950 is acting as a crucial Resistance on the Closing Basis.
On the Economic Front, GERMANY will be coming out with its Purchasing Manager Index Manufacturing for the month of April. Purchasing Manager Index Manufacturing for the month of April will also be announced by EUROPEAN MONETARY UNION. US will be coming out with its ISM Prices Paid and ISM Manufacturing for the month of April and also with Construction Spending for the month of March.
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. ALEMBIC, ALBK, BANKINDIA, CEAT, CENTURYTEXT, GLAXO, GODREJCONS, IOB, MARICO, NDTV, SOUTHBANK and TUBEINVEST will be announcing their Q4 FY11 Results tomorrow in INDIA. Audi AG will be coming out with its Q1 FY11 Results in GERMANY.
NIFTY is trading above its 50-Days SMA of 5624.83, yesterday it breached the 200-Days SMA of 5747.49 in intraday by making a low of 5706.05 and also breached the 20-Days EMA of 5785.67 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 49.28 and 55.70, respectively, showing a positive crossover.
2. MACD (26 Days & 12 Days): Their Values are 42.31 and 102.06, respectively. a positive crossover is indicated by both the Moving Averages.
3. +DI: 23.88, -DI: 25.72, ADX: 22.67: 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 5747.49, 5624.83 and 5785.67.
For the day, intraday resistance for NIFTY comes at 5780 / 5820 / 5850 levels. At the same time, 5700 / 5685 / 5650 will act as major intraday support levels.
Some Trading Stats of the Friday’s (29th April, 2011) Trading Session:
Net Selling of Rs. 689.89 Crore in Cash Segment, while, Net Buying of Rs. 697.07 Crore in F&O Segment by FIIs was witnessed on Friday’s Trading Session.
Net Selling of Rs. 30.77 Crore and of Rs. 1564.39 Crore was witnessed in Mutual Funds and Other Segments, respectively, whereas, Net Buying of Rs. 984.42 Crore was witnessed in Proprietory Trades by FIIs on Friday.
In F&O Segment Net Buying of Rs. 2332.05 Crore was witnessed in Index Options Segment, whereas, Net Selling of Rs. 1240.94 Crore, of Rs. 352.91 Crore and of Rs. 41.15 Crore was witnessed in Index Futures, Stock Futures and Stock Options Segment, respectively.
NIFTY MAY FUTURE ended in a Premium of 4.30 points to the Spot NIFTY.
A brief on some of the NIFTY 50 Stocks for TOMORROW:
AMBUJACEM: Can touch the levels of 162/163, if moves above the level of 159.
AXISBANK: Can touch the levels of 1260/1250, if breaches the level of 1285.
DLF: Can touch the levels of 220/218, if breaches the level of 223.
HDFCBANK: Can touch the levels of 2260/2250, if breaches the level of 2285.
IDFC: Can touch the levels of 142/140, if breaches the level of 145.
INFOSYSTCH: Can touch the levels of 2260/2250, if breaches the level of 2280.
JINDALSTEL: Can touch the levels of 645/642, if breaches the level of 652.
LT: Can touch the levels of 1560/1550, if breaches the level of 1590.
SUNPHARMA: Can touch the levels of 478/480, if moves above the level of 470.
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