Yesterday, NIFTY made a White Candlestick Pattern. Equities
advanced sharply as investors rushed to buy stocks on signs of a revival of the
economy and prospects of better India Inc growth in second quarter earnings. Tracking
a firm trend on Asian bourses and overnight gains on Wall Street, market kicked
off trade on an upbeat note. The bulls muscled up during late morning session
as retail and domestic investors enlarged their positions in realty, banking,
oil & gas and capital goods stocks. NIFTY witnessed a Gap Up Opening of
almost 40 Points. Stocks, meanwhile, pared gains during early afternoon percolating
the weakness in sentiment, NIFTY made intraday low, although in green, at 5075.30
level. However, a positive opening across European peers ticked up the
sentiment once again, which continued for the rest of the session. Thus,
propelling NIFTY to make its intraday high of 5148.05. BANKING & FINANCE
and REALTY & INFRA were the biggest gainers for the day and led the markets
to touch day’s high. Finally, for the day NIFTY managed to close at 5139.15, once
again above the level of 5100.
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. A Negative
Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still
intact. NIFTY has crossed its 20-Days EMA (Exponential Moving Average) and
50-Days SMA (Simple Moving Average) of 5015.89 and 5000.96, respectively on
closing basis. Both the averages have given a Positive Crossover, as the 20-Days
EMA has crossed the 50-Days SMA from downside. 20-Days EMA is also acting as a
Good Support Level for Nifty since last two trading sessions. NIFTY is trading
much below its 200-Days SMA of 5436.34. 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. Yesterday, NIFTY again
entered the level of 5100, due to Gap Up Opening and also maintained to close
above it at 5139.15. It marked a high of 5148.05 for the day. It has got
reverted from this level four times and has crossed it again for the fifth
time. 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. 5170 is the level again to be
watched, if NIFTY crosses it and sustains above it successfully this time, it
may touch the level of 5350 this time.
On the Economic Front, JAPAN will be coming out with its Coincident
Index and Leading Economic Index for the month of August. FDI – Foreign Direct
Investment for the month of September will be announced in CHINA. GERMANY will be coming out with Producer Price Index for the
month of September. Retail Sales for the month of September will be announced
in UK. EUROPEAN MONETARY UNION will
be announcing Consumer Confidence for the month of October. Continuing Jobless
Claims, Leading Indicators, Existing Home Sales Change, Existing Home Sales, Nationwide
Consumer Confidence for the month of September and Philadelphia Fed
Manufacturing Survey for the month of October 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.
Q2 FY11 Results Season is running
all over the Financial World. Hence, more of Sector Specific and Stock Specific
actions will be witnessed. Here is a quick look at some important results to be
announced domestically and internationally tomorrow. BAJAJ-AUTO, BAJAJ HOLDINGS, DEEPAKFERT, EXIDEIND, GHCL, GUJALKALI, GNFC,
GSFC, HEXAWARE, IDBI, IBPOWER, IBREALEST, INDIABULLS, KBIL, PIRHEALTH, STRTECH,
SWARAJENG, THERMAX, ULTRATECH and YESBANK
will be announcing their Results in INDIA.
PHILIP MORRIS INTERNATIONAL INC, ELI
LILLY AND CO, AT&T INC, McGRAW-HILL COMPANIES INC, ULTRATECH INC, BLACKSTONE
GROUP PLC, MICROSOFT CORP and SANDISK
CORP will be announcing their Q3 FY11 Results in US.
NIFTY has crossed its 20-Days EMA
(Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 5015.89
and 5000.96, respectively on closing basis. It is trading much below its
200-Days SMA of 5436.34. 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 5.08 and 28.58, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 29.80, -DI: 23.07, ADX: 14.71: The Positive Directional Index has gained strength over the Negative Directional Index and also the Average Directional Index is below 20, indicates that the market has entered in to the trading range right now.
4. SMA (200 Days), SMA (50 Days) & EMA (20 Days): NIFTY is trading below the levels of 200-Days SMA, but above the levels of 50-Days SMA and 20-Days EMA. These indicators are at the levels of 5436.34, 5000.96 and 5015.89, respectively.
Some Trading Stats of the Wednesday’s (19th October,
2011) Trading Session:
Net Selling of Rs. 14.45 Crore in Cash while Net Buying of Rs. 804.64 Crore in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.
Net Selling of Rs. 88.86 Crore and of Rs. 111.34 Crore was witnessed in Mutual
Funds and Proprietory Trades, respectively,
whereas, Net Buying of Rs. 422.34 Crore was witnessed in Others
Segment.
In F&O Segment Net Buying of Rs. 276.49 Crore, of Rs. 439.56 Crore and of Rs. 104.97 Crore was witnessed in Index Futures,
Index Options and Stock Futures, respectively,
while, Net Selling of Rs. 16.38 Crore was witnessed in Stock Options.
NIFTY OCT FUTURE ended at a Premium 10.25
Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
BHARTIARTL: Can touch the levels of 392/395, if crosses the level of 385.
HDFCBANK: Can touch the levels of 500/502, if crosses the level of 493.
HEROMOTOCO: Can touch the levels of 2090/2100, if crosses the level of 2070.
IDFC: Can touch the levels of 129/131, if crosses the level of 127.
LT: Can touch the levels of 1425/1435, if crosses the level of
1410.
SUNPHARMA: Can touch the levels of 493/495, if crosses the level of 483.
Pre Market Calls:
ABB: Buy ONLY IF ITS TRADES ABOVE 716 for the TARGETS of 727/730, with the STRICT SL of 707.
ABAN: Buy ONLY IF ITS TRADES ABOVE 412 for the TARGETS of 420/423, with the STRICT SL of 407.
For the day, intraday resistance for NIFTY comes at 5150 / 5180 / 5220 levels. At the same time, 5090 / 5050 / 5020 will act as major intraday support levels.
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