Yesterday, NIFTY made a Small White Candlestick Pattern, representing much of a Doji Candlestick Pattern. It was really an indecisive day for the Bulls and the Bears. NIFTY had a very flat opening with 4-5 points in the negative territory, but NIFTY touched its intraday high of 6566.40 during the first hour itself. It was marked as a very volatile and lackluster session. After touching the day’s high, NIFTY slipped a bit, but maintained above the previous day’s close. After the opening of European Markets, which were already hurt by the Downgrading of Portugal by Moody’s, NIFTY slipped suddenly and made a low of 5610.75. In the last hour of Trading, NIFTY tried to recover a bit, but slipped back. BANKING & FINANCE were down for most for the day. For the day, NIFTY ended the session at bounced very well from the day’s low, but in the last thirty hours it again slipped in red and closed the session at 5632.10.
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 have given a positive crossover, which signals a positive move for some of the trading sessions ahead. Now, the 200-Days SMA of 5750 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, JAPAN will be coming out with its Money Supply M2+CD, Current Account and Trade Balance – BOP Basis for the month of May. Industrial Production and Manufacturing Production for the month of May will be announced and also BoE (Bank of England) will be coming out with its Monetary Policy Statement, Asset Purchase Facility and Interest Rate Decision and NIESR GDP Estimate for the month of June in UK. GERMANY will be coming out with its Industrial Production for the month of May. ECB (European Central Bank) will be coming out with its Interest Rate Decision in EUROPAN MONETARY UNION. US will be coming out with ADP Employment Change for the month of June, Continuing Jobless Claims and Initial Jobless Claims.
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 5528.65 and 5505.93, respectively, but at the same time is still below its 200-Days SMA of 5744.98.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 60.54 and 57.72, respectively, showing a short term negative crossover.
2. MACD (26 Days & 12 Days): Their Values are 19.27 and 18.88, respectively. A short term negative crossover is indicated by both the Moving Averages.
3. +DI: 30.90, -DI: 19.79, ADX: 20.98: 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 5744.98, 5505.93 and 5528.65.
Some Trading Stats of the Wednesday’s (06th July, 2011) Trading Session:
Net Buying of Rs. 220.45 Crore in Cash while Net Selling of Rs. 177.84 Crore in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.
Net Selling of Rs. 23.34 Crore was witnessed in Mutual Funds, whereas, Net Buying of Rs. 106.38 Crore and of Rs. 490.81 Crore was witnessed in Proprietory Trades and Others Segment, respectively.
In F&O Segment Net Selling of Rs. 278.10 Crore was witnessed in Stock Futures, whereas, Net Buying of Rs. 10.33 Crore, of Rs. 71.43 Crore and of Rs. 18.51 Crore was witnessed in Index Futures, Index Options and Stock Options, respectively.
NIFTY JUN FUTURE ended at a Premium of 11.12 Points to NIFTY Spot.
A view on some of the NIFTY 50 Stocks for TOMORROW:
GAIL: Can touch the levels of 470/472, if crosses the level of 460.
SESAGOA: Can touch the levels of 296/298, if crosses the level of 291-292.
TATAMOTORS: Can touch the levels of 1050/1060, if crosses the level of 1035.
DRREDDY: Can dip to the levels of 1500/1490, if breaches the level of 1525.
For the day, intraday resistance for NIFTY comes at 5660 / 5690 / 5720 levels. At the same time, 5600 / 5580 / 5550 will act as major intraday support levels.
No comments:
Post a Comment