Yesterday, NIFTY again made a Long Black Candlestick Pattern. Markets
witnessed significant losses as correction in European peers smashed investor
buying sentiments. NIFTY witnessed a
muted opening in the negative terrain and opened with a loss of almost 15-20
points. The market extended its last session’s losses at the opening bell
itself. Later, though its managed to reverse direction and enter positive
terrain during early trade. NIFTY marked a high of 5158.75 for the day. But it
turned from that level and kept fluctuating between the two terrains till late
afternoon, was trading in a very tight range of just 15-20 points. Thereafter,
with global markets further worsening, NIFTY broke the range-bound session and
fell deep in red, in the last hour of trade. It marked a low of 5052.85 for the
day, which was almost 100 points down from the day’s high level. REALTY & INFRA
Sector was the biggest dud, stocks witnessed deep cuts ranging from 5%-12%. Other
than this, CAPITAL GOODS, POWER and BANKING & FINANCE were the sectors which
rag down the markets. Although NIFTY was cushioned by the level of 5050, the
sudden fall of 100 points created panic in investors and traders, due to which
a brutal sell off was witnessed in the Mid Cap Stocks. For the day NIFTY ended
at 5068.50, just above the crucial support level of 5050.
Technically, a Negative Crossover
between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Both
the 50-Days SMA and 20-Days EMA have given a Positive Crossover, as the short
term moving average has crossed the longer term average. Yesterday too, NIFTY
ended below its 20-Days EMA and 50-Days SMA, after breaching the important
support of 20-Days EMA, 50-Days SMA was acting as another Good Support level. It
is trading much below its 200-Days SMA of 5384.08. 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). Yesterday,
NIFTY slipped below the level of 61.80% level of 5101.97 in intraday trading by
making a low of 5052.85 and also closed much below it at 5068.50. Breaching of
this level signals that NIFTY can again witness a dip to the level of
5000/4950. Still the markets all over the Globe are doubtful about the clarity
of the European Debt Crisis. A positive action is being eagerly awaited from PIIGS
Countries 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, Bank of
Japan (BoJ) will be announcing its Interest Rate Decision in JAPAN. K will be coming out with its ILO
Unemployment Rate, Average Earnings including and excluding bonus for the month
of September, Claimant Count Rate for the month of October and Bank of England
Quarterly Inflation Report. Consumer Price Index for the month of October will
be announced by EUROPEAN MONETARY UNION.
US will be announcing MBA Mortgage Applications, Total Net NIC Flows and
Net Long-Term TIC Flows for the month of September, Industrial Production,
Capacity Utilization and Consumer Price Index for the month of October and NAHB
Housing Market Index for the month of November.
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 internationally tomorrow. INFINEON
TECHNOLOGIES AG will be announcing its Results in GERMANY.
NIFTY is once again trading below
its 20-Days EMA (Exponential Moving Average) and 200-Days SMA (Simple Moving
Average) of 5166.09 and 5166.09, respectively. Yesterday too NIFTY closed below
its 50-Days SMA of 5068.62. 14-Days RSI (Relative Strength Index) and 26-Days
MACD (Moving Average Convergence and Divergence) are again heading towards their
oversold zone after being reverted from the overbought zone.
What does Indicators Say?
2. MACD (26 Days & 12 Days): Their Values are 103.75 and 114.99, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 24.89, -DI: 27.99, ADX: 16.04: The Negative Directional Index has gained strength over the Positive Directional Index and also the Average Directional Index is below 20, indicates that the market has entered in to the trading range right now.
Some Trading Stats of the Tuesday’s (15th November,
2011) Trading Session:
Net Selling of Rs. 409.77 Crore in Cash and of Rs. 692.12 Crore in F&O Segment by FIIs was witnessed on Tuesday’s
Trading Session.
Net Selling of Rs. 1297.54 Crore was witnessed in Proprietory
Trades, whereas, Net Buying of Rs. 180.04 and Rs. 776.00 Crore was witnessed in Mutual
Funds and Others Trades, respectively.
In F&O Segment Net Selling of Rs. 924.48 Crore, of Rs. 142.42 Crore and of Rs. 3.27 Crore was witnessed in Index Futures, Stock Futures and
Stock Options, respectively, whereas, Net Buying of Rs. 378.04 Crore was witnessed in Index Options.
NIFTY NOV FUTURE ended at a Premium 9.70
Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
CIPLA: Can touch the levels of 313/316, if crosses the level of 307.
AMBUJACEM: Can dip to the levels of 157/156, if breaches the level of 160.
AXISBANK: Can dip to the levels of 985/975, if breaches the level of 1005.
DLF: Can dip to the levels of 203/200, if breaches the level of
207.
JPASSOCIAT: Can dip to the levels of 68/67.60, if breaches the level of 69.80.
M&M: Can dip to the levels of 740/735, if breaches the level of
760.
PNB: Can dip to the levels of 900/892, if breaches the level of
918.
STER: Can dip to the levels of 110/108, if breaches the level of
113.
TATASTEEL: Can dip to the levels of 391/385, if breaches the level of 399.
Pre Market Calls:
ABIRLANUVO: Sell ONLY IF IT TRADES BELOW 887 for the TARGETS of 870/865, with the STRICT SL of 898.
EXIDEIND: Sell ONLY IF IT TRADES BELOW 121 for the TARGETS of 118/116, with the STRICT SL of 122.60.
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.
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