Yesterday, NIFTY made a Small White Candlestick Pattern. Following
Robust Global Cues, NIFTY registered another Gap Up Opening of almost 39
points. Overnight gains in the U.S. after surprisingly strong housing figures
and International Monetary Fund's (IMF) plan to expand its lending resources to
counter Europe's debt crisis, bolstered investor confidence across the globe. NIFTY
regained its important psychological level of 5000 for the first time
since December 8 last year. After the endiing of Morning session and before the
opening European Markets, NIFTY traded in a very range and also marked an
intraday low of 4991.40. But after a firm start of the European Markets, NIFTY
again pulled back from the low of the day and added gains till the intraday
high of 5023.80. REALTY & INFRA and METAL Sectors were the biggest gainers
for the day, which also helped market to gain. Finally, NIFTY ended at 5018.40
for the day, above the crucial level of 5000.
Technically, a Negative Crossover
between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. As mentioned earlier, NIFTY has touched the
levels of 4950/5000 on the closing basis. “A Short Term Positive Moving Average
Crossover is on the verge of development, as the 20-Days EMA (Short Term Moving
Average) is on the verge of crossing the 50-Days SMA (Long Term Moving Average)
from downside. This Crossover will result in a Short Term upside movement of
NIFTY till the levels of 4950/5000”. 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. The level of 4720 will now act as the strong support level on closing
basis for NIFTY. Now, NIFTY has also crossed the level of 4957.07 (61.80% Level
of Retracement) on the closing basis, which may lead it to the levels of
5050/5080, if it registers continuous Two-Three Closing above this. 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, CHINA will be coming out with its HSBC
Manufacturing PMI for the month of January. All Industry Activity Index,
Leading Economic Index and Coincident Index for the month of November will be
announced in JAPAN. GERMANY will be
coming out with its Producer Price Index for the month of December. Retail
Sales for the month of December, will be announced in U.K. U.S. will be announcing its Existing Home Sales Change and
Existing Home Sales for the month of December.
Quarterly Results Season has commenced
all over the Globe. INDIA Inc. will be Q3 FY12 Results. Some of the important
results to be announced tomorrow in INDIA
are of AXISBANK, MAHABANK, EXIDEIND,
HCC, HINDZINC, ITC, JETAIRWAYS, JSWSTEEL, NIIT, POLARIS, PRAJIND, RELIANCE,
SYNDIBANK, MCDOWELL-N, WIPRO and WWIL.
GENERAL ELECTRIC CO will be announcing its Q4 FY11 numbers in U.S.
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) and 50-Days SMA (Simple Moving Average) of 4839.33
and 4826.14, respectively on the closing basis, but it is still trading below its
200-Days SMA of 5224.10. The 14-Days RSI (Relative Strength Index) and 26-Days
MACD (Moving Average Convergence and Divergence) are now heading towards the
overbought zone.
What does Indicators Say?
2. MACD (26 Days & 12 Days): Their Values are 88.94 and 35.57, respectively. A short term negative crossover is indicated by both the Moving Averages.
3. +DI: 32.44, -DI: 19.39, ADX: 13.27: The Positive Directional Index has gained strength over the Negative Directional Index and the Average Directional Index is below 20, indicates that the market is in the trading range.
Some Trading Stats of the Thursday’s (19th January,
2012) Trading Session:
Net Buying of Rs. 626.14 Crore in Cash and of Rs. 2187.26
Crore in F&O Segment by
FIIs was witnessed on Thursday’s Trading Session.
In F&O Segment Net Buying of Rs. 1133.35 Crore, of Rs. 552.40 Crore and of Rs. 536.29 Crore was witnessed in Index Futures,
Index Options and Stock Futures,
respectively, whereas, Net Selling of Rs. 34.78 Crore was witnessed in Stock Options.
NIFTY JAN FUTURE ended at a Premium of 3.65
Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
AMBUJACEM: Can touch the levels of 164/166, if crosses the level of 161.
HINDALCO: Can touch the levels of 149/151, if crosses the level of 146.
STER: Can touch the levels of 118/119, if crosses the level of 115.50.
TATAPOWER: Can touch the levels of 106.60/107.20, if crosses the level of 104.20.
BHEL: Can dip to the levels of 258/256, if breaches the level of
265.
M&M: Can dip to the levels of 658/656, if breaches the level of
672.
Pre Market Calls:
ABAN: Buy ONLY IF IT TRADES ABOVE 442 for the TARGETS of 452/460, with the STRICT SL of 436. (ONLY FOR HIGH RISK TRADERS)
BIOCON: Buy ONLY IF IT TRADES ABOVE 276 for the TARGETS of 281/283, with the STRICT SL of 272.
For the day, intraday resistance for NIFTY comes at 5050 / 5080 / 5120 levels. At the same time, 4980 / 4950 / 4920 will act as major intraday support levels.
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