Yesterday, NIFTY made a Short White Candlestick Pattern. NIFTY had a quiet opening of almost 15-20 points in the upside. Markets continued to follow the trend of other International Markets and remained positive. With the opening only, NIFTY touched an important resistance of 5650 by making a high of 5657.90. BANKING & FINANCE, IT, SUGAR, FERTILIZER and METAL kept the hold in the market. Markets took a sigh of relief after the approval of Rescue Plan by European Government for Greece. Although it was an F&O Expiry session, then too it was very quiet and sticky. After touching the day’s high, NIFTY slipped a bit and made a low of 5606.10 for the day. PHARMA was the biggest sector to lose. Till the second half of trading session, markets traded in a very tight range. But immediately after the opening of European Markets, NIFTY reverted in the last half an hour of trade and traded near day’s high. Finally for the day, NIFTY ended very near to its day’s high of 5657.90 and closed at 5647.40.
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). After making a low of 5195.90 on 20th June, 2011, NIFTY again reverted and entered the Extension marked on the chart. The positive and unpredicted strong move in NIFTY is aided by Short Covering earlier and then by approval of Measures adopted by European Government for Greece and sudden huge inflow from Foreign Institutional Investors (FIIs). An excellent move of almost 450 points has been witnessed in just 10 days. A Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact, but at the same time both the 20-Days EMA (Exponential Moving Average) and 20-Days are at the verge of giving a Positive Crossover, which may prove positive for the market in short term. Now, the 200-Days SMA is playing a role of a good resistance level for NIFTY, whereas the level of 5170 proved to be a Good Support.
On the Economic Front, CHINA will be coming out with its Manufacturing PMI and HSBC Manufacturing PMI for the month of June. Purchasing Manager Index Manufacturing for the month of June will be announced in GERMANY. EUROPEAN MONETARY UNION will be coming out with its Purchasing Manager Index Manufacturing for the month of June and Unemployment Rate for the month of May. Purchasing Manager Index Manufacturing for the month of June will be announced in UK. US will be coming out with its Reuters/Michigan Consumer Sentiment Index, ISM Prices Paid, ISM Manufacturing and Total Vehicle Sales for the month of June and Construction Spending 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 focus on Bottom Fishing and invest in the markets for short term only, as markets are still prone to Uncertain Scenario both at the International and National Levels.
NIFTY is again trading above its 20-Days EMA and 50-Days SMA of 5477.04 and 5524.45, respectively, but at the same time is still below its 200-Days SMA of 5750.08.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 63.97 and 52.14, respectively, showing a short term positive crossover.
2. MACD (26 Days & 12 Days): Their Values are 46.02 and 34.44, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 34.21, -DI: 22.38, ADX: 19.80: The Positive Directional Index has gained strength over the Negative Directional Index and also the Average Directional Index is above 20, indicating that the market is in the trading range right now.
4. SMA (200 Days), SMA (50 Days) & EMA (20 Days): The values of these indicators are 5750.08, 5524.45 and 5477.04.
Some Trading Stats of the Thursday’s (30th June, 2011) Trading Session:
Net Buying of Rs. 1591.34 Crore in Cash and of Rs. 1680.75 Crore in F&O Segment by FIIs was witnessed on Thursday’s Trading Session.
Net Selling of Rs. 290.99 Crore, of Rs. 1551.18 Crore and of Rs. 1501.01 Crore was witnessed in Mutual Funds, Proprietory Trades and Others Segment, respectively.
In F&O Segment Net Selling of Rs. 27.24 Crore and of Rs. 12.61 Crore was witnessed in Stock Futures and Stock Options, respectively, whereas, Net Buying of Rs. 1091.18 Crore and of Rs. 629.42 Crore was witnessed in Index Futures and Index Options, respectively.
NIFTY JUN FUTURE ended at a Discount of 3.30 Points to NIFTY Spot.
A view on some of the NIFTY 50 Stocks for TOMORROW:
CAIRN: Can touch the levels of 319/320, if crosses the level of 312.
HEROHONDA: Can touch the levels of 1920/1930, if crosses the level of 1885.
INFOSYSTCH: Can touch the levels of 2950/2960, if crosses the level of 2920.
JINDALSTEL: Can touch the levels of 660/662, if crosses the level of 653.
RELIANCE: Can touch the levels of 920/925, if crosses the level of 900-901.
HEROHONDA: Can touch the levels of 1210/1220, if crosses the level of 1185.
TATASTEEL: Can touch the levels of 620/625.
For the day, intraday resistance for NIFTY comes at 5665 / 5690 / 5720 levels. At the same time, 5620 / 5580 / 5550 will act as major intraday support levels.
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