Yesterday, NIFTY made a White Candlestick Pattern, with a longer
lower shadow, indicating that it closed much above the day’s low; hence, bulls
were in action. The candlestick is appearing more of a Bullish Hammer Candlestick Pattern. This observation reduces the
previous bearish sentiment causing the short traders to feel increasingly
uneasier with their bearish positions. Markets
ended higher as bargain hunting in IT, technology and capital goods stocks
eased concerns of a downswing, throwing in some confidence to recently
beaten-up markets. NIFTY witnessed a
very flat opening of almost 20-25 points in the positive terrain. However,
sentiment deteriorated soon and the market fell below the previous day’s closing
in a jiffy. The street continued volatile trade throughout the morning
session. NIFTY marked a low of 4863.80 for the day. Nonetheless, just as
it appeared that the bears would take the driver’s seat yet again, the key
indices re-entered the positive terrain on the back of bottom fishing by
investors. NIFTY after kissing its day’s low of 4863.80, reverted sharply
and pulled back to the levels of 4950, by marking a high of 4965.80 for the
day. NIFTY recovered more than 100 points from the day’s low. In the second
half of trading session, the rally became stronger backed by Robust opening of
European Bourses. IT, CAPITAL GOODS and CONSUMER GOODS Sectors took the lead
and made markets recovered. For the day, NIFTY closed near to its day’s high at
4948.90.
Fear all over the Globe is the
main cause of such fierceful crash within a short span of time. Still more bad
news is in the offing regarding the International Economies. Indian Markets are
just paying the cost of Globalization, hence affected to that level much. Right
now, no signs are visible for a Pullback, but at the same time, traders and
investors should be ready for a sharp pullback, as this crash is coming with
huge Gaps and with volume backed by fears more.
Technically, NIFTY finally
touched the most awaited level of 4800, awaited since the next week of Diwali
2010. Yesterday, it was witnessed that the level of 4850 was acting as a Good
Support for NIFTY. It made a low of 4863.80 for the day and reverted form the
day’s low. 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. Right now, the level of 5200 is playing a role of a stiff resistance level
for NIFTY on the closing basis, whereas the level of 4750 will be acting as a Good
Support Level in the coming sessions. The so-called level of 4800 got achieved
by NIFTY; still it is in the down trend, as there is more Bad News in the offing
in terms of International Economic Uncertainties. A Fibonnaci Retracement Level
is being drawn from the High of 6338.50 (08th November, 2010) to the
recent 21-Months Low marked 4796.10 by NIFTY (19th August, 2011),
which represents the level of 5160 (Level of 61.80%) as the first important
resistance level to be crossed on the Closing Basis for the NIFTY to enter in a
Comfortable Zone for traders. A pull back till the levels of 5150 or 5200 can
be witnessed in the coming trading sessions.
On the Economic Front, GERMANY will be coming out with its IFO-Current
Assessment, IFO-Business Climate and IFO-Expectations for the month of August. Industrial
New Orders for the month of June will be announced by EUROPEAN MONETARY UNION. UK will be coming out with its Nationwide
Consumer Confidence for the month of July and Nationwide Housing Prices for the
month of August. MBA Mortgage Applications, Housing Price Index for the month
of June and Durable Goods Orders for the month of July 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 stay from the markets right now, as market will give
better chances ahead for Bottom Fishing and earning handsome returns
thereafter.
NIFTY is trading below all its
Moving Averages like 200-Days SMA, 50-Days SMA and 20-Days EMA of 5627.21, 5407.54
and 5162.22, respectively. 14-Days RSI (Relative Strength Index) and 26-Days
MACD (Moving Average Convergence and Divergence) are moving towards their oversold
zone with every sell off in the markets, signaling a pull back at any point of
time in the markets.
What does Indicators Say?
2. MACD (26 Days & 12 Days): Their Values are -262.75 and -199.27, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 11.59, -DI: 37.64, ADX: 39.84: The Negative Directional Index has gained strength over the Positive Directional Index and also the Average Directional Index is above 20, indicates that the market is in the trending range right now.
4. SMA (200 Days), SMA (50 Days) & EMA (20 Days): NIFTY is trading below the levels of of these indicators are 5627.21, 5407.54 and 5162.22.
Some Trading Stats of the Tuesday’s (23rd August, 2011)
Trading Session:
Net Selling of Rs. 100.34 Crore in Cash while Net Buying of Rs. 1723.21 Crore in F&O Segment by FIIs was witnessed on Tuesday’s Trading Session.
Net Selling of Rs. 5.76 Crore and of Rs. 238.09 Crore was witnessed in Mutual
Funds and Proprietory Trades, whereas, Net Buying of Rs. 1426.03 Crore was witnessed in Others Segment.
In F&O Segment Net Buying of Rs. 488.49 Crore, of Rs. 1072.42 Crore, of Rs. 148.27 Crore and of Rs. 14.03 Crore was witnessed in Index
Futures, Index Options, Stock Futures and Stock Options, respectively.
NIFTY AUG FUTURE ended at a Discount of 1.50
Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
AXISBANK: Can touch the levels of 1110/1120, if crosses the level of 1090.
BHARTIARTL: Can touch the levels of 410/412, if crosses the level of 402.
BHEL: Can touch the levels of 1785/1795, if crosses the level of
1760.
INFY: Can touch the levels of 2325/2335, if crosses the level of
2280.
TATASTEEL: Can touch the levels of 486/490, if crosses the level of 478.
TCS: Can touch the levels of 1000/1010, if crosses the level of
985.
Pre Market Calls:
PATNI: Buy only if it trades above 268 for the Targets of 273/277, with the Strict SL of 264.
For the day, intraday resistance for NIFTY comes at 4980 / 5020 / 5050 levels. At the same time, 4920 / 4880 / 4850 will act as major intraday support levels.
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