On Friday, NIFTY made a Black Candlestick Pattern. The day before NIFTY made a Bearish Dragonfly Doji Candlestick Pattern, confirmation of which is done by either a black candlestick, a large gap down or a by a lower close on the next trading day if witnessed. Equities were trading flattish on Friday, with a slight tinge of red as gains in capital goods, consumer durables and auto stocks were being offset by losses in realty, technology and IT counters. Post a weak opening, the market muscled up during early afternoon trade as funds and retail investors enlarged their positions in frontline auto stocks ahead of the festive season. However, the indices soon lost sheen as concerns of impending rate hike by the country’s apex bank triggered a sell-off in rate sensitive realty shares. NIFTY after making a high of 5120.75 slipped to the day’s low of 5037.95 (slipped almost 80 points from the day’s high level). CONSUMER DURABLES was the major gainer; while REALTY &I INFRA was the biggest laggard. Finally, for the day NIFTY managed to close at 5049.95, just below the level of 5050, proving the formation of Bearish Dragonfly Doji Candlestick Pattern on Thursday’s trading session right, as the closing was 50 points below Thursday’s closing.
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 5025.68 and 4997.20, 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 four trading sessions. NIFTY is trading
much below its 200-Days SMA of 5425.59. 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 is again struggling
with this level; however, it closed below it at 5049.95 on Friday, but marked a
high of 5120.75 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, GERMANY will be coming out with its Purchasing
Manager Index Services and Purchasing Manager Index Manufacturing for the month
of October. Industrial New Orders for the month of August, Purchasing Manager
Index Services and Purchasing Manager Index Manufacturing for the month of
October will be announced by EUROPEAN
MONETARY UNION.
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. CONCOR, EIDPARRY, GAIL, ITC, MAHINDRA & MAHINDRA FINANCIAL, NFL,
PFIZER, STER, TITAN, UNIONBANK and WYETH
will be announcing their Results in INDIA.
CATERPILLAR INC will be
announcing its Q3 FY11 Results in US.
NIFTY has crossed its 20-Days EMA
(Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 5025.68
and 4997.20, respectively on closing basis. It is trading much below its
200-Days SMA of 5425.59. 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 31.03 and 10.60, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 27.65, -DI: 22.85, ADX: 13.82: 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 5425.59, 4997.20 and 5025.68, respectively.
Net Selling of ` 234.01 Crore in Cash while Net Buying of ` 1444.57 Crore in F&O Segment by FIIs was witnessed on Friday’s Trading Session.
Net Selling of ` 1420.04 Crore and of ` 649.52 Crore was witnessed in Proprietory
Trades and Others Segment, respectively, while, Net Buying of ` 13.42 Crore was witnessed in Mutual Funds.
In F&O Segment Net Buying of ` 485.72 Crore and of ` 1377.19 Crore was witnessed in Index Futures
and Index Options, respectively, while, Net Selling of ` 402.91 Crore and of ` 15.43 Crore was witnessed in Stock Futures and Stock Options, respectively.
NIFTY OCT FUTURE ended at a Premium 4.05
Points to the Spot NIFTY.
For the day, intraday resistance for NIFTY comes at 5080 / 5120 / 5150 levels. At the same time, 5020 / 4980 / 4950 will act as major intraday support levels.
No comments:
Post a Comment