Yesterday, NIFTY made a White Candlestick Pattern. NIFTY had a positive opening of almost 20-25 points. As expected an extreme volatile session was witnessed on the F&O Expiry Day. In the morning session, after opening although flat markets traded with a positive bias. This positive move was led by OIL & GAS, METAL and BANKING & FINANCE Sector stocks. After touching the day’ high, markets again traded flat till the last hour of the day. A sudden spike in last 45 minutes of trade turned the market GREEN, each and every stock of Index spiked up sharply from the day’s low to day’s high of 5422.20. For the day, NIFTY ended the day at 5412.35, said to be comfortable zone as closed above 5400 levels.
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). Yesterday, NIFTY made a low of 5356.35 breaching the 61.80% level of 5378.79, this level is acting as a Short Term Strong Support Level for NIFTY on Closing Basis. 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. This time selling pressure is more witnessed due to Uncertain Economic Conditions both Internationally and Domestically, Continuous Net Outflow from the FIIs and deep correction in the stocks prices in a minimal time. Now if NIFTY consecutively closes two-three times below 5350, more strong selling pressure can be witnessed in the Markets. Now, the level of 5500 is acting as a crucial Resistance on the Closing Basis.
On the Economic Front, GERMANY will be coming out with its Consumer Price Index for the month of May. Nationwide Housing Prices for the month of May will be announced in UK. EUROPEAN MONETARY UNION will be coming out with M3 Money Supply for the month of April, Consumer Confidence, Economic Confidence and Economic Confidence for the month of May. Personal Consumption Expenditure – Prices Index, Personal Income, Core Personal Consumption Expenditure – Prices Index, Personal Consumption Expenditures and Pending Home Sales for the month of April and also Reuters/Michigan Consumer Sentiment Index 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. BANKBARODA, BPL, BRITANNIA, EKC, FINANTECH, GUJFLUORO, GNFC, GSFC, HAVELLS, HDIL, JSL, LML, MUKTA ARTS, NEYVELILIG, NHPC, NMDC, PVP, RELINFRA, RPOWER, SHREECEM and TNPL 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 5504.18, 5754.39 and 5633.68, 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.
As stated earlier, that if this time NIFTY did not take the support of 5450 and reverted, it may test the previous lows of 5370 and 5180 too, Traders and Investors should keep this in mind while aggressively dealing with the Markets. Markets are also moving on Events and Sentiments at this time.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 40.23 and 37.88, respectively, showing a negative crossover.
2. MACD (26 Days & 12 Days): Their Values are -132.37 and -131.27, respectively. A negative crossover is indicated by both the Moving Averages.
3. +DI: 15.74, -DI: 27.39, ADX: 28.62: 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 5754.39, 5633.68 and 5504.18.
Some Trading Stats of the Thursday’s (26th May, 2011) Trading Session:
Net Buying of Rs. 124.38 Crore in Cash and of Rs. 205.69 Crore in F&O Segment by FIIs was witnessed on Thursday’s Trading Session.
Net Selling of Rs. 774.96 Crore was witnessed in Proprietory Trades, whereas, Net Buying of Rs. 166.46 Crore and of Rs. 28.48 Crore was witnessed in Mutual Funds and Others Segment.
In F&O Segment Net Buying Rs. 456.72 Crore, of Rs. 230.27 Crore and of Rs. 0.92 Crore was witnessed in Index Futures, Stock Futures and Stock Options Segment, respectively, whereas, Net Selling of Rs. 482.22 Crore was witnessed in Index Options Segment.
A brief on some of the NIFTY 50 Stocks for TOMORROW:
BPCL: Can move to the levels of 625/628, if crosses the level of 616.
GRASIM: Can move to the levels of 2285/2295, if crosses the level of 2255.
HCLTECH: Can move to the levels of 508/510, if crosses the level of 500.
NTPC: Can move to the levels of 174/175, if crosses the level of 171.
ONGC: Can move to the levels of 282/285, if crosses the level of 275.
PNB: Can move to the levels of 1100/1110.
RANBAXY: Can move to the levels of 518/522.
SAIL: Can move to the levels of 149/150, if crosses the level of 144.
SUNPHARMA: Can move to the levels of 450/455, if crosses the level of 443-444.
For the day, intraday resistance for NIFTY comes at 5450 / 5480 / 5520 levels. At the same time, 5380 / 5350 / 5320 will act as major intraday support levels.
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