Yesterday, NIFTY made a White Candlestick Pattern, with a longer lower shadow. NIFTY had a very negative opening with almost 20-25 points downside on the backdrop of disappointing US economic data on Friday. NIFTY traded with a negative bias till first half an hour of trading session and made a low of 5436.95 for the day. METAL & MINING, BANKING & FINANCE, INFRA & REALTY and OIL & GAS were dragging the market down. NIFTY was finding it difficult to maintain above 5450, but after kissing the day’s low it reverted from there sharply and made a high of 5496.70 aided by PHARMA, FMCG and POWER Sectors. MIDCAP REALTY & INFRA stocks were the biggest gainers for the day. Again a highly volatile session was witnessed in the markets in a very narrow range. For the NIFTY closed at 5482.80.
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. Yesterday too, the 20-Days EMA played a role of a good resistance level and NIFTY could not even touch it by making an intraday high and also ended much below it at 5482.80. Now the level of 5635 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. Markets are waiting for an important Trigger to make a big move on the either way; the Trigger may be at the National Level or at the International Level.
On the Economic Front, BoJ (Bank of Japan) will be coming out with its Monetary Policy Statement and also with its Interest Rate Decision, along with Industrial Production and Capacity Utilization for the month of April in JAPAN. CHINA will be coming out with its Producer Price Index, Retail Sales, Urban Investment, Consumer Price Index, Industrial Production and FDI – Foreign Direct Investment (YTD) for the month of May. UK will be coming out with its Nationwide Consumer Confidence, Retail Price Index, Consumer Price Index, Core Consumer Price Index for the month of May, DCLG House Price Index and CB Leading Indicator Index for the month of April. Producer Price Index and Retail Sales for the month of May and also Business Inventories for the month of April will be announced in US. INDIA will be announcing its Monthly Inflation Data 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 make Fresh Investments at this point of time in the Markets in the stocks heavily beaten down with the Averaging Principle.
NIFTY is again trading below its 20-Days EMA, 50-Days SMA and 200-Days SMA of 5515.18, 5630.59 and 5757.54, 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 45.34 and 47.47, respectively, showing a short term positive crossover.
2. MACD (26 Days & 12 Days): Their Values are 31.34 and -14.24, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 20.74, -DI: 24.88, ADX: 15.84: 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 5757.54, 5630.59 and 5515.18.
Some Trading Stats of the Monday’s (13th June, 2011) Trading Session:
Net Selling of Rs. 304.17 Crore in Cash, while, Net Buying of Rs. 159.11 Crore in F&O Segment by FIIs was witnessed on Monday’s Trading Session.
Net Selling of Rs. 504.25 Crore was witnessed in Proprietory Trades, whereas, Net Buying of Rs. 67.60 Crore and of Rs. 857.11 Crore was witnessed in Mutual Funds and Others Segment, respectively.
In F&O Segment Net Selling of Rs. 365.02 Crore was witnessed in Index Futures, while, Net Buying of Rs. 337.01 Crore, of Rs. 182.62 Crore and of Rs. 4.49 Crore was witnessed in Index Options, Stock Futures and Stock Options, respectively.
NIFTY JUN FUTURE ended at a Premium of 15.70 Points to NIFTY Spot.
A view on some of the NIFTY 50 Stocks for TOMORROW:
CIPLA: Can touch the levels of 346/348, if crosses the level of 340.
JPASSOCIAT: Can touch the levels of 86.50/87.20, if crosses the level of 84.30.
NTPC: Can touch the levels of 183/184, if crosses the level of 180.
DRREDDY: Can dip to the levels of 1520/1510, if breaches the level of 1540.
HINDALCO: Can dip to the levels of 177/176, if breaches the level of 180.
IDFC: Can dip to the levels of 130/129, if breaches the level of 132.
TATASTEEL: Can dip to the levels of 557/553, if breaches the level of 562.
For the day, intraday resistance for NIFTY comes at 5500 / 5530 / 5550 levels. At the same time, 5450 / 5410 / 5380 will act as major intraday support levels.
No comments:
Post a Comment