Yesterday, NIFTY made a Long Black Candlestick Pattern. NIFTY
is trading in a very small range of just 60 points, that too with high
volatility since last four trading sessions. Hence, still a proper direction
lead is not clear for it, although market is moving in full synchronization
with the International Markets. NIFTY
witnessed a Small Gap Up opening of almost 25-30 points, taking positive cues
from the International Markets. Immediately, after opening NIFTY registered its
Intraday high of 5645.40. Nevertheless, the bourses weakened from the high
levels and traded range-bound for at least an hour. Post an hour into trading,
the indices started losing sheen and entered into negative terrain for the
first time in trade, as selling took toll. Nevertheless, the dive into the red
zone was short lasting as the bourses bounced back above the previous day’s
close and managed to trade range-bound. However, another strong wave of selling
pushed the indices lower into negative terrain. Although the bourses made an
attempt to make it back to positive terrain, all the efforts were in vain as
more selling pressure emerged, taking NIFTY even lower to the intraday low of
5555.10. Although, European Markets registered their opening in Green
territory. POWER, PHARMA, CAPITAL GOODS and AUTO Sectors dipped the markets
southwards. For the day, NIFTY ended at 5567.05.
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. Yesterday,
NIFTY crossed the level of 50.00% (5620.13) of the Extension drawn by making a
high of 5645.40 just after the opening, but during the session it slipped closed
below it 5567.05, i.e. just above the 38.20% Level (5561.17) of the Retracement
drawn from the high of 6335.90 and again below the level of 5600. Currently, the
immediate support for NIFTY is placed at 20-Days EMA of 5571.54 and the 50-Days
SMA of 5506.70 is acting as a Short Term Support for NIFTY on the closing Basis,
as if it breaches NIFTY may again take a dip to the levels of 5480. 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 stiff resistance level for NIFTY on the closing basis, whereas the level
of 5170 proved to be a Good Support for the long term.
On the Economic Front, CHINA will be coming out with its HSBC
Manufacturing PMI for the month of July. All Industry Activity Index for the
month of May will be announced in JAPAN.
GERMANY will be coming out with its Purchasing Manager Index Services and
Purchasing Manager Index Manufacturing for the month of July. Purchasing
Manager Index Services and Purchasing Manager Index Manufacturing for the month
of July and Current Account for the month of May will be announced by EUROPEAN MONETARY UNION. UK will be
coming out with its Retail Sales and Public Sector Net Borrowing for the month
of June. Continuing Jobless Claims, Initial Jobless Claims, Leading Indicators
and Philadelphia Fed Manufacturing Survey for the month of July and Housing
Price Index 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.
Q1 FY11 Results Season is running
all over the Financial World. Hence, here is a quick look at some important
results to be announced domestically and internationally. BIOCON, CONCOR, COROMANDEL, DBCORP, ENIL, HEROHONDA, HINDZINC, IBPOW,
INDIABULLS, JSWENERGY, KOTAKBANK, MAHINDRALIFE, NOIDATOLL, SESAGOA, YESBANK and
ZEEL will be announcing their Q1 FY11
Results tomorrow in INDIA. Whirlpool Corp, Pepsico Inc, Philip Morris
International Inc, Morgan Stanley, AT&T Inc, New York Times Inc, Ultratech
Inc, Eli Lilly And Co, Blackstone Group LP, Microsoft Corp and Sandisk Corp will be announcing their
results tomorrow in US.
NIFTY is again trading above its
20-Days EMA and 50-Days SMA of 5571.54 and 5506.70, respectively, but at the
same time is still below its 200-Days SMA of 5723.37.
What does Indicators Say?
2. MACD (26 Days & 12 Days): Their Values are 81.13 and 81.97, respectively. A short term negative crossover is indicated by both the Moving Averages.
3. +DI: 27.11, -DI: 18.68, ADX: 17.95: The Positive Directional Index has gained strength over the Negative Directional Index and also the Average Directional Index is below 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 5723.37, 5506.70 and 5571.54.
Some Trading Stats of the Wednesday’s (20th July, 2011)
Trading Session:
Net Selling of Rs. 90.44 Crore in Cash and of Rs. 257.65 Crore in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.
Net Selling of Rs. 70.65 Crore was witnessed in Mutual Funds, whereas, Net Buying
of Rs. 504.09 Crore and of Rs. 804.83 Crore was witnessed in Proprietory
Trades and Others Segment, respectively.
In F&O Segment Net Selling of Rs. 392.71 Crore and of Rs. 12.02 Crore was witnessed in Stock Futures and Stock Options, respectively, whereas, Net
Buying of Rs. 56.43 Crore and of Rs. 90.65 Crore was witnessed in Index
Futures and Index Options, respectively.
NIFTY JULY FUTURE ended at a Premium of 2.50
Points to NIFTY Spot.
A view on some of the NIFTY 50 Stocks for TOMORROW:
DLF: Can touch the levels of 248/250, if crosses the level of
240.
DRREDDY: Can dip to the levels of 1545/1535, if
breaches the level of 1560.
HDFCBANK: Can dip to the levels of 493/490, if
breaches the level of 500.
HINDALCO: Can dip to the levels of 176/174, if
breaches the level of 178.
WIPRO: Can
dip to the levels of 390/388, if breaches the level of 398.
For the day, intraday resistance for NIFTY comes at 5580 / 5620 / 5650 levels. At the same time, 5550 / 5520 / 5480 will act as major intraday support levels.
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