Yesterday, NIFTY made a White Opening Marubozu Candlestick Pattern,
indicating that it was a typical bull day and strength of the bulls is
enough to cause some concern among the bears. Markets confirmed the formation
of Bullish Hammer Candlestick Pattern formed
a day before, this pattern requires confirmation of the implied trend reversal
by a white candlestick, a large gap up or a higher close the next trading day. NIFTY
marked a Gap Up Opening of almost 70 points on the back of robust Global Cues. It
continued its upside move till the end of the session marking the day’s high of
4982.95. The up move of the benchmarks was boosted after reports suggested that
finance ministry was considering some tax cuts on equities to reduce
transaction costs and increase participation in the market. Furthermore, buzz
around European Union's new plans to revive its debt-laden countries ticked up
sentiment globally. Negative global cues, weak sentiments and cautious money
waiting on the sidelines resulted into a weak trading session. Buying action
was witnessed all across the board, but at the same time it won’t be wrong to
say it as a strong pull back due to short covering. REALTY & INFRA, IT and
OIL & GAS were the Sectors which led the market to day’s high. Finally, for
the day NIFTY ended above the level of 4950 and near to the day’s high at 4971.25.
Technically, NIFTY took a Strong
support of 4720 once again and bounced back from that. As mentioned earlier too
that 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, hence traders
and investors should be ready for the more down side ahead. The 20-Days EMA and
50-Days SMA are in a Negative Crossover, hence, indicating more selling
pressure to creep in. Also 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 4720 will be acting as a Good Support Level in the coming sessions.
A Fibonnaci Retracement Level is being drawn from the High of 6338.50 (08th
November, 2010) to the recent 18-Months Low marked 4720.00 by NIFTY (26th
August, 2011), which represents the level of 5100 (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. NIFTY has got reverted from
this level for the third time and closed much below it. Still extreme
uncertainties lie in the Markets although not in short term but in long term
period. Hence, still the traders and investors should wait for fruitful results
ahead. However, Traders are suggested to take the advantage of Swing Trading,
which will appear many times in between.
5170 on the upper side and 4720
on the lower side, NIFTY is trading in this range since the Starting of
September series. It is making lower lows but is facing resistance at the same
level again and again. Breakout on the either side will be deciding the further
direction of the market in the short term.
On the Economic Front, JAPAN will be coming out with its
Retail Trade and Large Retailer’s Sales for the month of August. Consumer Price
Index for the month of September will be announced in GERMANY. UK will be
announcing Bank of England Credit Conditions Report. MBA Mortgage Applications,
Durable Goods Orders and Fed’s Bernanke Sppech will be the major events and announcements
to be looked 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 5509.70, 5166.20
and 5009.42, respectively. 14-Days RSI (Relative Strength Index) and 26-Days
MACD (Moving Average Convergence and Divergence) have reverted from the
oversold zone, but still with every sell off in the markets they are heading
towards their oversold zone.
What does Indicators Say?
2. MACD (26 Days & 12 Days): Their Values are 15.72 and 18.81, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 25.21, -DI: 34.44, ADX: 21.31: 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 has entered in to the trending range right now.
4. SMA (200 Days), SMA (50 Days) & EMA (20 Days): NIFTY is trading below the levels of these indicators are 5509.70, 5166.20 and 5009.42.
Some Trading Stats of the Tuesday’s (27th September,
2011) Trading Session:
Net Buying of Rs. 34.08 Crore in Cash and of Rs. 2782.78 Crore in F&O Segment by FIIs was witnessed on Tuesday’s Trading Session.
Net Buying of Rs. 35.61 Crore and of Rs. 2057.77 Crore was witnessed in Mutual
Funds and Others Trades, whereas, Net Selling of Rs. 673.73 Crore was witnessed in Proprietory Trades.
In F&O Segment Net Buying of Rs. 1255.82 Crore, of Rs. 1062.71 Crore, of Rs. 432.52 Crore and of Rs. 31.73 Crore was witnessed in Index
Futures, Index Options, Stock Futures and Stock Options, respectively.
NIFTY SEP FUTURE ended at a Premium of 6.60
Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
ACC: Can touch the levels of 1115/1125, if crosses the level of
1095.
BHEL: Can touch the levels of 1680/1690, if crosses the level of
1660.
DLF: Can touch the levels of 221/223, if crosses the level of 218.
HINDALCO: Can touch the levels of 138/139, if crosses the level of 135.
HINDUNILVR: Can touch the levels of 348/350, if crosses the level of 339.
JPASSOCIAT: Can touch the levels of 76.50/77.20, if crosses the level of 74.
TATAMOTORS: Can touch the levels of 160/162, if crosses the level of 157.
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