Yesterday, NIFTY made a White Opening Marubozu Candlestick Pattern. After a tussle between the Bulls and the Bears, the day before yesterday, finally Bulls won with a stunning rally of almost 95 points. NIFTY had a very quite opening of almost 8-10 points in the Positive Territory. Immediately after opening NIFTY kissed its important resistance of 5650 but could not cross it initially and made a low of 5632.95 for the day. After testing the low, NIFTY reverted sharply and crossed its resistance by making a high of 5660 and traded or say stuck to that level till the announcement of Weekly Inflation Data. After the announcement of Data too it stuck to that level, but in the last hour of trade NIFTY moved up sharply crossing its another crucial resistance of 5700 and marked a high of 5737.15 for the day. No specific Sector Movement was witnessed; it was all the Stock Specific movement, which helped NIFTY too. For the day, NIFTY ended the session at 5728.95.
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). Yesterday, NIFTY almost touched the level of 38.20% of the Retracement drawn by making a high of 5737.15, but closed at 5728.95. 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 on the closing basis, whereas the level of 5170 proved to be a Good Support.
On the Economic Front, JAPAN will be coming out with its Eco Watchers Survey and Outlook for the month of June. Current Account and Trade Balance for the month of May will be announced in GERMANY. UK will be announcing its Producer Price Index – Input & Output for the June. Unemployment Rate, Average Weekly Hours, Average Hourly Earnings and Nonfarm Payrolls for the month of June and Wholesale Inventories and Consumer Credit Change 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 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 5547.73 and 5504.80, respectively, but at the same time is still below its 200-Days SMA of 5743.58.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 67.36 and 59.65, respectively, showing a short term negative crossover.
2. MACD (26 Days & 12 Days): Their Values are 51.76 and 4.75, respectively. A short term negative crossover is indicated by both the Moving Averages.
3. +DI: 35.36, -DI: 17.71, ADX: 21.85: 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 5743.58, 5504.80 and 5547.73.
Some Trading Stats of the Thursday’s (07th July, 2011) Trading Session:
Net Buying of Rs. 868.71 Crore in Cash and of Rs. 1811.38 Crore in F&O Segment by FIIs was witnessed on Thursday’s Trading Session.
Net Selling of Rs. 30.75 Crore and of Rs. 260.04 Crore was witnessed in Mutual Funds and Proprietory Trades, respectively, whereas, Net Buying of Rs. 468.62 Crore was witnessed in Others Segment.
In F&O Segment Net Selling of Rs. 16.66 Crore and of Rs. 36.03 Crore was witnessed in Stock Futures and Stock Options, respectively, whereas, Net Buying of Rs. 601.05 Crore and of Rs. 1263.03 Crore was witnessed in Index Futures and Index Options, respectively.
NIFTY JULY FUTURE ended at a Premium of 15.65 Points to NIFTY Spot.
A view on some of the NIFTY 50 Stocks for TOMORROW:
BAJAJ-AUTO: Can touch the levels of 1480/1490, if crosses the level of 1460.
BHARTIARTL: Can touch the levels of 405/408, if crosses the level of 398.
CIPLA: Can touch the levels of 342/345, if crosses the level of 335.
MARUTI: Can touch the levels of 1200/1210, if crosses the level of 1185.
TATAMOTORS: Can touch the levels of 1170/1180, if crosses the level of 1155.
For the day, intraday resistance for NIFTY comes at 5750 / 5780 / 5820 levels. At the same time, 5700 / 5660 / 5630 will act as major intraday support levels.
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