Yesterday, NIFTY made a Long Black Candlestick Pattern. Equities
dropped sharply, as investors sold off their paper wealth in banking, realty,
metal, oil & gas and PSU counters. NIFTY marked a positive opening of
almost 20 points, following global cues. However, profit booking emerged in
shares from banking sector during late morning session after Moody's Investor
Service downgraded its outlook for India's banking system to
"negative" from "stable". Moreover, NIFTY broke out of
narrow range of 5320 and 5280 on the lower side as selling intensified in State
Bank of India (SBI) after it reported results for quarter ended September. A
weak trend in the European markets as Italian-German bond yield spreads widened
to 500 basis points triggered further selling, pushing the bourses off the
cliff in the last trading hour. NIFTY dipped almost 100 points from the day’s high;
it marked a low of 5211.75, again not breaching the crucial support of 5200. BANKING
& FINANCE, METALS and AUTO were the sectors which dragged the market lower
and lower for the day. For the day, NIFTY closed at 5221.05.
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 5180.41 and 5051.04, 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
5392.65. 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, CHINA will be coming out with its M2
Money Supply for the month of October. UK
will be announcing its Producer Price Index – Output and Producer Price
Index – Input for the month of October. Reuters/Michigan Consumer Sentiment
index for the month of November will be announced in US. INDIA will be coming out with its IIP Data (Index of Industrial Production) for the month of September.
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. ADANIPOWER, ANANTRAJ, BRITANNIAIND, DREDGINGCORP, EDUCOMP, FINANTECH, GESHIP,
HDIL, JETAIRWAYS, JINDALSAW, LITL, MUNDRAPORT, PENTAMEDIA GRAPHICS, PIPAVAV
DEFENCE, REIAGRO, RELCAPITAL, RENUKA, SPICEJET, SRF, TNPL and TATACHEM will be announcing their
Results in INDIA.
NIFTY has crossed its 20-Days EMA
(Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 5180.41
and 5051.04, respectively on closing basis. It is trading much below its
200-Days SMA of 5392.65. 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 131.50 and 111.70, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 28.20, -DI: 20.91, ADX: 18.64: 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 5392.65, 5051.04 and 5180.41, respectively.
Some Trading Stats of the Wednesday’s (09th November,
2011) Trading Session:
Net Buying of Rs. 559.04 Crore in Cash and of Rs. 11.27 Crore in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.
Net Selling of Rs. 101.94 Crore and of Rs. 1132.32 Crore was witnessed in Mutual
Funds and Proprietory Trades,
respectively, whereas, Net Buying of Rs. 1033.17 Crore was witnessed in Others Segment.
In F&O Segment Net Buying of Rs. 535.29 Crore and of Rs. 2.11 Crore was witnessed in Index
Futures and Stock Options, respectively, whereas, Net Selling of Rs. 250.82 Crore and of Rs. 275.29 Crore was witnessed in Index Options and Stock Futures, respectively.
NIFTY NOV FUTURE ended at a Premium
16.05 Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
ACC: Can dip to the levels of 1190/1180, if breaches the level
of 1205.
BPCL: Can dip to the levels of 558/555, if breaches the level of
569.
DLF: Can dip to the levels of 228/226, if breaches the level of
233.
ICICIBANK: Can dip to the levels of 854/845, if breaches the level of 860.
IDFC: Can dip to the levels of 119/118, if breaches the level of
122.
SBIN: Can dip to the levels of 1830/1820, if breaches the level
of 1860.
STER: Can dip to the levels of 116/115, if breaches the level of
119.
TATASTEEL: Can dip to the levels of 438/435, if breaches the level of 445.
For the day, intraday resistance for NIFTY comes at 5250 / 5280 / 5320 levels. At the same time, 5180 / 5150 / 5120 will act as major intraday support levels.
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