On Friday, NIFTY made a White Candlestick Pattern, appearing
like Bullish Dragonfly Doji Candlestick
Pattern or say Bullish Hammer Candlestick Pattern. Reflecting the overnight
tremors in US market, domestic equities (SENSEX and NIFTY) opened with a
negative bias. NIFTY plunged within
few minutes by almost 125 points, its lowest level since June 14, 2010. NIFTY
tried to consolidate near the levels of 5200 in the morning’s trading session,
but after concentrating a bit over there and nearing the Opening of European
Markets, NIFTY slipped much more and marked a new 52-Week Low or say the
14-Months Low of 5116.45. However, investors rushed to take positions around
key support levels as closing bell neared. Markets recovered smartly from the
day’s low and closed the session at 5211.25, recovering almost 95 points. A
broad based selling pressure was witnessed at the Dalal Street. Markets were
bleeding all over the Globe due to the fear of U.S. slipping again in the grip
of Recession.
Technically, NIFTY has been
trading between the Fibonnaci Retracement drawn from the High of 6338.50 (08th
November, 2010) to the Low of 5177.70 (11th February, 2011) and the Longer
Extension Level drawn from the Low of 4786.45 (25th May, 2010) to
the High of 6335.90 (08th November, 2010) since it made a life-time
high of 6338.50, or say since December (last 9 months). On Friday, NIFTY took a
hard knock by breaching its important support level of 5177.70 maintaining it
since 2nd February, 2011. It fiercely breached the lower trendline
marked from the low of 5177.70 (02nd February, 2011) to the low of 5195.90
(26th June, 2011). NIFTY breached this lower trendline in Intraday
Trading by making a low of 5116.45 but managed to close at the trendline at 5211.25.
The 20-Days EMA and 50-Days SMA have again made a Negative Crossover, hence, indicating
more selling pressure to creep in. A Negative Crossover between 200-Days SMA
(Simple Moving Average) and 50-Days SMA is still intact. NIFTY breached all its
important support levels just in a day of trading. Now, the 20-Days EMA of 5486.83
is playing a role of a stiff resistance level for NIFTY on the closing basis,
whereas the level of 5080 will be acting as a Good Support Level in the coming
sessions. The so-called level of 4800 will soon be achieved by NIFTY in the
coming period, as there is more Bad News in the offing in terms of
International Economic Uncertainties.
On the Economic Front, JAPAN will be coming out with its Eco
Watchers Survey: Outlook and Eco Watchers Survey: Current, Money Supply M2+CD
for the month of July. RICS Housing Price Balance and BRC Retail Sales Monitor
for the month of July will be announced in UK.
EUROPEAN MONETARY UNION will be coming out with its Sentix Investor
Confidence for the month of August.
Traders are suggested to trade
cautiously by following Strict Stop Losses and Booking Fast Profits, whereas,
Investors are suggested to stay from the markets right now, as market will give
better chances ahead for Bottom Fishing and earning handsome returns
thereafter.
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. DEEPAKFERT, EIH, FINOLEX CABLES, LT, M&M, MONSANTO INDIA, MOREPAN
LABS, PTC INDIA and TATACHEM will
be announcing their Q1 FY11 Results tomorrow in INDIA.
NIFTY is trading below all its
Moving Averages like 200-Days SMA, 50-Days SMA and 20-Days EMA of 5686.01, 5517.61
and 5486.83, respectively.
What does Indicators Say?
2. MACD (26 Days & 12 Days): Their Values are -66.71 and 61.10, respectively. A short term negative crossover is indicated by both the Moving Averages.
3. +DI: 16.06, -DI: 42.38, ADX: 17.46: The Negative Directional Index has gained strength over the Positive 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): NIFTY is trading below the levels of of these indicators are 5686.01, 5517.61 and 5586.83.
Some Trading Stats of the Friday’s (05th August, 2011)
Trading Session:
Net Selling of Rs. 1788.96 Crore in Cash while Net Buying of Rs. 1378.76 Crore in F&O Segment by FIIs was witnessed on Friday’s
Trading Session.
Net Buying of Rs. 38.97 Crore and of Rs. 3173.51 Crore was witnessed in Mutual
Funds and Others Trades, whereas, Net Selling of Rs. 1820.65 Crore was witnessed in Proprietory Trades.
In F&O Segment Net Buying of Rs. 81.25 Crore, of Rs. 1001.08 Crore and of Rs. 1316.30 Crore was witnessed in Index
Futures, Index Options and Stock Futures, respectively, whereas, Net Selling of Rs. 19.86 Crore was witnessed in Stock Options.
NIFTY AUG FUTURE ended at 0.10 Points
Premium to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
GRASIM: Can dip to the levels of 2080/2070, if breaches the level
of 2100.
RCOM: Can dip to the levels of 89.60/89, if breaches the level
of 91.60.
BPCL: Can touch the levels of 715/720, if crosses the level of 707.
SUNPHARMA: Can touch the levels of 509/512, if crosses the level of 500.
For the day, intraday resistance for NIFTY comes at 5230 / 5260 / 5290 levels. At the same time, 5180 / 5150 / 5120 will act as major intraday support levels.
For the week, resistance for NIFTY comes at 5300 & 5420 levels. At the same time, 5120 & 5000 will act as major support levels.
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