On Friday, NIFTY made a Bearish Belt Hold Candlestick Pattern, it
was a day for bears and such a bearish rally should cause concern among the
bulls. The market took a solid opening tracking positive global markets after
Greece shelved its referendum plans. NIFTY marked a Gap Up Opening of almost 60
points and within moments it moved to the day’s high of 5326.45. Market
continued to move in a tight range throughout the morning session. Sentiment,
however, declined with the advent of afternoon session when reports came in
that Pakistan had backtracked from its announcement of granting India the
status of Most Favored Nation (MFN). NIFTY kept hitting one fresh intraday low
after another courtesy the news and fell into the negative terrain in
mid-afternoon trade, made its intraday lows at 5256.80, not breaching the
crucial support of 5250. However, the benchmarks recovered soon after a Pakistani
foreign office spokesperson clarified that Pakistan is not backtracking on MFN
trade status for India. Volatility ruled the roost during late afternoon trade
as NIFTY closed with mild gains after falling into the negative terrain. It
recovered almost 25 points from the day’s low and closed at 5284.20 for the
day. METAL and CAPITAL GOODS were the sectors which traded in green throughout
the session.
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 5164.22 and 5037.59, 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
5396.99. 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. A positive action is being eagerly awaited from Greece all around
the Globe. 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.
On the Economic Front, JAPAN will be coming out with its Trade
Balance – BOP Basis and Current Account for the month of September. Manufacturing
Production and Industrial Production for the month of September, NIESR GDP
Estimate, RICS Housing Price Balance and BRC Retail Sales Monitor for the month
of October will be announced in UK. GERMANY will be coming out with Trade
Balance and Current Account for the month of September. IBP/TIPP Economic
Optimism for the month of November 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. ABAN, ABB, AUROPHARMA, BANKINDIA, BOSCH, FINOLEX CABLES, GODREJIND,
HINDCOPPER, IDFC, MOREPAN LAB, OPTO CIRCUITS, RELINFRA, RPOWER and UBHOLDINGS will be announcing their
Results in INDIA. CAP GEMINI SA and SOCIETE GENERALE will be announcing its
Q3 FY11 Results in FRANCE.
NIFTY has crossed its 20-Days EMA
(Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 5164.22
and 5037.59, respectively on closing basis. It is trading much below its
200-Days SMA of 5398.84. 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 129.34 and 101.28, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 31.86, -DI: 19.86, ADX: 18.67: 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 5396.99, 5037.59 and 5164.22, respectively.
Some Trading Stats of the Friday’s (04th November,
2011) Trading Session:
Net Buying of Rs. 128.62 Crore in Cash while Net Selling of Rs. 4.99 Crore in F&O Segment by FIIs was witnessed on Friday’s
Trading Session.
Net Buying of Rs. 84.22 Crore and of Rs. 571.45 Crore was witnessed in Mutual
Funds and Others Segment, respectively, whereas, Net Selling of Rs. 203.49 Crore was witnessed in Proprietory Trades.
In F&O Segment Net Selling of Rs. 345.20 Crore and of Rs. 10.85 Crore was witnessed in Index Options and Stock Options, respectively, whereas, Net
Buying of Rs. 314.43 Crore and of Rs. 36.63 Crore was witnessed in Index Futures
and Stock Futures, respectively.
NIFTY NOV FUTURE ended at a Premium 32.65
Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
BHARTIARTL: Can touch the levels of 406/408, if crosses the level of 398.
TCS: Can dip to the levels of 1080/1070, if breaches the level
of 1095.
For the day, intraday resistance for NIFTY comes at 5320 / 5350 / 5380 levels. At the same time, 5250 / 5220 / 5180 will act as major intraday support levels.
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