On Friday, NIFTY made a High Wave Candlestick Pattern. This
pattern is like long legged doji shows that there is a great amount of
indecision in the market. It means
that the end result is not different from the initial open despite the whole
excitement and volatility during the day. The pattern implies a loss of sense
of direction and that there is a great amount of indecision in the market. A confirmation of this Candlestick
Pattern is definitely required in the form of an opposite move to the prior
trade on the next trading day in order to judge that a reversal may be
starting. NIFTY witnessed a Gap Down
Opening of almost 25 Points and then traded in the southward direction in the
early session. It marked a low of 4730.15 for the day. But it did not touch or
breach the level of 4720. After marking a low, it kept trading in a small range
and reverted sharply in last trading hour. It bounced to the level of 4794.90,
but could not even touch or cross the level of 4800. OIL & GAS, FMCG,
BANKING & FINANCE and PHARMA were the sectors to close in Green for the
day, whereas, CAPITAL GOODS, REALTY &INFRA and POWER Sectors were the major
losers for the day. Finally, NIFTY ended at 4754.10 for the day.
Technically, a Negative Crossover
between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Even
a Negative Crossover between the 50-Days SMA and 20-Days EMA has developed
since, which signals selling pressure to creep in coming trading sessions. NIFTY
has crossed its 20-Days EMA yesterday, on the closing basis, but it is still
trading below its 50-Days SMA. A Fibonnaci Retracement Level is being drawn
from the High of 6338.50 (08th November, 2010) to the 28-Months Low
marked 4531.15 by NIFTY (21st December, 2011). Still the investors
should wait for fruitful results ahead and stay away from the markets. With
deteriorating International Economic Scenario NIFTY even breached its important
support level of 4650 on closing basis, which was till now acting as a good
support level. It is becoming really tough for NIFTY to make a proper ground to
land on. The level of 4550 will now act as the strong support level on closing basis
for NIFTY, whereas the level of 4800 is the immediate resistance for NIFTY on
Closing Basis, so that Investors can be allowed to enter into the markets. Investors
are suggested to avoid the markets to invest at this time; however, traders are
suggested to take the advantage of Swing Trading, which will appear many times
in between.
On the Economic Front, GERMANY will be coming out with its
Industrial Production, Current Account and Trade Balance for the month of
November. Halifax House Prices for the month of December will be announced in UK. EUROPEAN MONETARY UNION will be
coming out with Sentix Investor Confidence for the month of January. Consumer
Credit Change for the month of November will be announced in US.
Weakening Rupee, Deteriorating
European Economy Conditions, Uncertainties in Indian Corporate and Finance
Scenario are acting as major triggers of the massive sell off, which is
resulting in development of Fear among the Indian and International Investors. 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.
NIFTY has crossed its 20-Days EMA
(Exponential Moving Average) of 4745.06 on closing basis, but it is still
trading below its 200-Days SMA (Simple Moving Average) and 50-Days SMA of 5259.81
and 4905.03, respectively. The 14-Days RSI (Relative Strength Index) and
26-Days MACD (Moving Average Convergence and Divergence) are now heading
towards the oversold zone one again.
What does Indicators Say?
2. MACD (26 Days & 12 Days): Their Values are 55.05 and 76.70, respectively. A short term negative crossover is indicated by both the Moving Averages.
3. +DI: 21.36, -DI: 24.77, ADX: 15.44: The Negative Directional Index has gained strength over the Positive Directional Index and the Average Directional Index is below 20, indicates that the market is in the trading range.
Some Trading Stats of the Saturday’s (07th January,
2012) Trading Session:
Net Selling of Rs. 28.63 Crore in Cash and of Rs. 102.87 Crore in F&O Segment by FIIs was witnessed on Saturday’s Trading Session.
Net Selling of Rs. 84.98 Crore and of Rs. 119.34 Crore was witnessed in Mutual
Funds and Proprietory Trades,
respectively, whereas, Net Buying of Rs. 582.22 Crore was witnessed in Others
Segment.
In F&O Segment Net Selling of Rs. 9.01 Crore, of Rs. 88.85 Crore, of Rs. 5.00 Crore was witnessed in Index Futures, Index Options and
Stock Futures, respectively, while, No Action was
witnessed in Stock Options.
NIFTY JAN FUTURE ended at a Premium of 17.85
Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
BPCL: Can touch the levels of 485/490, if crosses the level of 478.
HINDALCO: Can touch the levels of 121/123, if crosses the level of 119.
RCOM: Can touch the levels of 79.50/80, if crosses the level of 78.
RELINFRA: Can touch the levels of 388/392, if crosses the level of 381.
RPOWER: Can touch the levels of 75.20/75.50, if crosses the level of 73.80.
BHARTIARTL: Can dip to the levels of 323/320, if breaches the level of 330.
HEROMOTOCO: Can dip to the levels of 1705/1695, if breaches the level of 1730.
JINDALSTEL: Can dip to the levels of 455/450, if breaches the level of 465.
Pre Market Calls:
ARVIND: Buy ONLY IF IT TRADES ABOVE 75.60 for the TARGETS of 78/78.80, with the STRICT SL of 74.50.
PANTALOONR: Buy ONLY IF IT TRADES ABOVE 149 for the TARGETS of 153/155, with the STRICT SL of 147.10.
For the day, intraday resistance for NIFTY comes at 4780 / 4820 / 4850 levels. At the same time, 4720 / 4680 / 4650 will act as major intraday support levels.
good info......sonal ji
ReplyDeletethx
bull equity