Yesterday, NIFTY made a Small Black Candlestick Pattern. The
market started trade on negative note; NIFTY witnessed a Gap Down Opening of
almost 50 points, but immediately started covering and marked an intraday high
of 5310.85. Tracking weak Global Cues and witnessing continuous selling
pressure dragged NIFTY again below the levels of 5300 and it got hammered
brutally by marking a low of 5238.30 for the day, breaching an important
support of 5250. Prime Minister George Papandreou’s shock decision to call a
referendum on Greece’s bailout drew veiled threats from Germany and hammered
markets edgy over the euro zone crisis. A very weak opening of European Markets
also aided the continuous selling pressure in gaining strength. Equities
declined for the second consecutive day, tracking a weak global trend and
sustained selling by funds and retail investors in capital goods, FMCG, metal
and banking stocks. A bit of short covering was witnessed in the markets in
last half an hour of trade which also helped NIFTY to close above the levels of
5250 at 5257.95.
Technically, 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 5127.06 and 5015.19, 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. Right now, 20-Days EMA is also acting as a Good
Support Level for NIFTY. It is trading much below its 200-Days SMA of 5404.29. After
crossing the consolidation zone of 5170 on the higher side and 4720 on the
lower side, NIFTY successfully crossed the level of 5170 on the approval of
European Debt Deal and is now facing the resistance of 5400 on the closing
basis. A Fibonnaci Retracement Level is being drawn from the High of 6338.50
(08th November, 2010) to the 18-Months Low marked 4720.00 by NIFTY (26th
August, 2011). NIFTY has crossed the level of 61.80% level of 5101.97, but is
again trading below the 50.00% level of 5338.27. Still the markets all over the
Globe are doubtful about the clarity of the European Debt Deal. 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.
As predicted earlier that 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. NIFTY has crossed this level due to the approval
of European Debt Deal and also made a high of 5399.70.
On the Economic Front, UK will be coming out with its Halifax
House Prices and PMI Construction for the month of October. Purchasing Manager
Index Manufacturing, Unemployment Rate and Unemployment Change for the month of
October will be announced in GERMANY. EUROPEAN
MONETARY UNION will be announcing the Purchasing Manager Index
Manufacturing for the month of October. MBA Mortgage Applications, ADP
Employment Change for the month of October and Fed Interest Rate Decision will
be coming out 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. ALBK, ANDHRABANK, HINDUSTAN MOTORS, HINDUSTAN ORG, NAVNEET, TRENT and
TUBE INVEST will be announcing their
Results in INDIA. MASTERCARD INC, COGNIZANT TECHNOLOGY
SOLUTIONS CORP, TIME WARNER INC and KRAFT
FOODS INC 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 5127.06
and 5015.19, respectively on closing basis. It is trading much below its
200-Days SMA of 5404.29. 14-Days RSI (Relative Strength Index) and 26-Days MACD
(Moving Average Convergence and Divergence) are moving towards their overbought
zone after being reverted from the oversold zone.
What does Indicators Say?
2. MACD (26 Days & 12 Days): Their Values are 129.59 and 78.26, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 34.21, -DI: 21.01, ADX: 13.73: 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 5404.29, 5015.19 and 5127.06, respectively.
Some Trading Stats of the Tuesday’s (01st November,
2011) Trading Session:
Net Selling of Rs. 20.66 Crore in Cash while Net Buying of Rs. 555.39 Crore in F&O Segment by
FIIs was witnessed on Tuesday’s Trading Session.
Net Selling of Rs. 144.85 Crore and of Rs. 1187.82 Crore was witnessed in Mutual
Funds and Proprietory Trades, respectively,
whereas, Net Buying of Rs. 1002.98 Crore was witnessed in Others
Segment.
In F&O Segment Net Buying of Rs. 1404.98 Crore and of Rs. 16.60 Crore was witnessed in Index Options
and Stock Options, respectively, while, Net Selling of Rs. 497.98 Crore and of Rs. 368.21 Crore was witnessed in Index Futures and Stock Futures, respectively.
NIFTY NOV FUTURE ended at a Premium 33.45
Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
ACC: Can dip to the levels of 1170/1160, if breaches the level
of 1184.
HCLTECH: Can dip to the levels of 420/418, if breaches the level of 430.
PNB: Can touch the levels of 1030/1040, if crosses the level of
1015.
For the day, intraday resistance for NIFTY comes at 5280 / 5320 / 5350 levels. At the same time, 5220 / 5180 / 5150 will act as major intraday support levels.
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