Yesterday, NIFTY made a Small Black Candlestick Pattern, with a very short body. NIFTY opened in the Red Territory with almost 15-20 points of downside triggered by weak global cues. It was a very dull and choppy session with NIFTY trading in a very narrow range. After the opening till the first half of trading session, some buying interest was witnessed which lifted NIFTY to the day’s high of 5556.60. In the second half of trading session, after the weak opening of European Markets, markets continued to trade even more range-bound, until building selling pressure led the markets lower. In the last half hour of trade, NIFTY hit fresh intraday low of 5514.90, but escaped from touching the important support level of 5500, which gave a relief to the intraday traders. For the day, NIFTY closed at 5526.85, very near to the day’s low. NIFTY could not touch or cross its important resistance of 5580, but did not even breached the support of 5500 for whole of the session, which clearly indicates that the markets are still undecided about their further move and are waiting for a trigger to decide it.
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. On Friday, again 20-Days EMA played the role of a good support level and NIFTY closed just above the level, however breached it in intraday trading. Hence, now the level of 5650 is acting as a Short Term Resistance, for NIFTY, where the 50-Days SMA lies too, whereas the level of 5320 proved to be a Good Support. A technical bounce till the level of 5650 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 Consumer Confidence Index and Machine Tool Orders, Domestic Corporate Goods Price Index for the month of May and Tertiary Industry Index for the month of April. Trade Balance, Goods Trade Balance for the month of April, BoE (Bank of England) Monetary Policy Statement, BoE Asset Purchase Facility and BoE Interest Rate Decision will be announced in UK. EUROPEAN MONETARY UNION will be coming out with ECB (European Central Bank) Interest Rate Decision. Trade Balance and Wholesale Inventories for the month of April, Initial Jobless Claims and Continuing Jobless Claims 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.
NIFTY moved much above its 20-Days EMA of 5522.15, but it is still trading below its 200-Days SMA and 50-Days SMA of 5757.65 and 5645.02, respectively. MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) are signaling a short term northward move in the markets, due to the positive crossovers.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 49.28 and 48.56, respectively, showing a short term positive crossover.
2. MACD (26 Days & 12 Days): Their Values are 1.29 and -50.29, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 24.50, -DI: 20.70, ADX: 18.17: The Positivee 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.
Some Trading Stats of the Wednesday’s (08th June, 2011) Trading Session:
Net Buying of Rs. 50.43 Crore in Cash, and of Rs. 116.53 Crore in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.
Net Selling of Rs. 20.89 Crore and of Rs. 440.43 Crore was witnessed in Mutual Funds and Proprietory Trades, respectively, whereas, Net Buying of Rs. 143.69 Crore was witnessed in Others Segment.
In F&O Segment Net Selling of Rs. 268.18 Crore, of Rs. 270.25 Crore and of Rs. 1.64 Crore was witnessed in Index Futures, Stock Futures and Stock Options, respectively, whereas, Net Buying of Rs. 656.60 Crore was witnessed in Index Options.
NIFTY JUN FUTURE ended at a Premium of 3 Points to NIFTY Spot.
A view on some of the NIFTY 50 Stocks for TOMORROW:
BHEL: Can touch the levels of 1940/1950, if crosses the level of 1920.
ONGC: Can dip to the levels of 263/260, if breaches the level of 267.
HEROHONDA: Can dip to the levels of 1730/1720, if breaches the level of 1760.
STER: Can dip to the levels of 164/163, if breaches the level of 166.
IVRCLINFRA: Buy only if it trades above 76 with the SL of 75 for the TGTs 78/80.
DBREALTY: Buy only if it trades above 80 with the SL of 79 for the TGTs of 86/88.
RECLTD: Sell only if it trades below 207 with the SL of 210 for the TGTs of 202/199.
No comments:
Post a Comment