Yesterday, NIFTY made a White Candlestick Pattern, with a thick
body. The candle engulfed its
previous day’s candle, but still it could not completely engulf the candles
made on the 07th February, 2012. When NIFTY will completely cross or
engulf this day’s candle, it will move ahead in the northwards direction in the
forthcoming trading sessions. After witnessing a choppy session for most of the
day, the market soared to new heights to recoup the day’s losses in the last
half hour of trade. NIFTY opened flat with a negative bias of almost 25 points.
After the opening, it moved very range bound (from 5350 to 5380) till the
opening of European Markets. The market started gaining momentum after a robust
opening of its European peers amid positive cues about the Greek debt talks.
The European markets traded in the positive terrain majorly pulled up by banks
and oil firms. METAL Stocks pulled the market in green, followed by REALTY
& INFRA and BANKING & FINANCE Sector stocks. NIFTY moved to the day’s
high level of 5423.40, crossing the level crucial resistance level of 5400,
however, for the day it made a low of 5338.90. METAL and REALTY & INFRA Sectors
were the top Gainers of the day, pushing NIFTY higher, while PHARMA, CONSUMER
GOODS and OIL & GAS Sector were the biggest losers for the day. Finally, NIFTY
ended at 5412.35 for the day, registering a robust close above the level of
5400.
Technically, a Negative Crossover
between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. The
20-Days EMA is on the verge of crossing the 200-Days SMA, which will result in
a Positive Moving average Crossover (The Shorter Term Moving Average crossing
the Longer Term Moving Average from downside). This crossover may lead NIFTY to
more heights in forthcoming trading sessions. 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). Now,
the level of 5433.52 (31.80% Level of Retracement) is the next resistance level
to be tested by NIFTY. The levels of 5220.56 (50.00% Level of Retracement) will
now act as the immediate Support Level for NIFTY. NIFTY has now crossed all the
resistance levels and also closed above the level of 5200. As mentioned
earlier, NIFTY may witness a pause at
the level of 5220 to move ahead for the levels of 5300/5440 or may also revert
from this level to 5050/4950. NIFTY is currently taking an immediate
support of 5400 levels on closing basis.
On the Economic Front, CHINA will be coming out with its Trade
Balance for the month of January. Consumer Price Index for the month of January
will be announced in GERMANY. U.K. will
be coming out with its Producer price Index – Input and Producer Price Index –
Output for the month of January. Trade Balance for the month of December,
Monthly Budget Statement for the month of January and Reuters / Michigan
Consumer Sentiment Index for the month of February will be announced in U.S. INDIA will be coming out with its IIP
(Index of Industrial Production) Data for the month of December.
Q3 FY12 Results Season has
commenced all over the Globe. Some of the important results to be announced
tomorrow in INDIA are of APOLLOHOSP, AUROPHARMA, BFUTILITIE, BRFL,
BPCL, BRITANNIA, DLF, ESSAROIL, GESHIP, HINDUSTAN ORGANIC, HOTEL LEELA, IDFC,
JSWSTEEL, MMTC, MOREPAN LAB, MTNL, NEYVELILIG, PANACEA BIOTECH, PANTALOONR,
PENTAMEDIA GRAPHICS, PIPAVAV DEFENCE, RELCAPITAL, RCOM, SRTRANSFIN, TATACHEM,
TATAPOWER, TRIGYN TECH and UCAL
FUEL. ALCATEL LUCENT SA, MICHELIN SCA and TOTAL SA will be coming out with its quarterly earnings in FRANCE. BARCLAYS PLC will be announcing
their quarterly numbers in U.K.
Traders are suggested to trade
cautiously by following Strict Stop Losses and Booking Fast Profits, whereas,
Investors are suggested to take advantage of this short term move, which may
pay off excellent returns.
NIFTY has crossed its 20-Days EMA
(Exponential Moving Average), 50-Days SMA (Simple Moving Average) and also
200-Days SMA of 5164.98, 4919.57 and 5180.67, respectively on the closing basis.
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?
1. RSI (14 Days & 9 Days): The values are 75.24 and 72.16, respectively. The indicator is moving towards ovebought zone from the oversold zone.
2. MACD (26 Days & 12 Days): Their Values are 203.40 and 178.90, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 37.82, -DI: 11.09, ADX: 33.04: The Positive Directional Index has gained strength over the Negative Directional Index and the Average Directional Index is above 20, indicates that the trend of the market is strengthening.
Some Trading Stats of the Thursday’s (09th February,
2012) Trading Session:
Net Buying of Rs. 1200.66 Crore in Cash while Net Selling of Rs. 97.36 Crore in F&O Segment by FIIs was witnessed on Thursday’s Trading Session.
In F&O Segment Net Selling of Rs. 57.54 Crore, of Rs. 259.17 Crore and of Rs. 30.74 Crore was witnessed in Index Futures, Stock Futures and Stock
Options, respectively, whereas, Net Buying of Rs. 250.09 Crore was witnessed in Index Options.
NIFTY FEB FUTURE ended at a Premium of 24.70
Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
BPCL: Can touch the levels of 612/615, if crosses the level of
600.
INFY: Can touch the levels of 2850/2860, if crosses the level of
2820.
JINDALSTEL: Can touch the levels of 620/625, if crosses the level of 606.
NTPC: Can touch the levels of 184/185, if crosses the level of 180.50.
SIEMENS: Can touch the levels of 820/825, if crosses the level of 804.
STER: Can touch the levels of 133/134, if crosses the level of
130.
TATAPOWER: Can touch the levels of 114/115, if crosses the level of 112.
For the day, intraday resistance for NIFTY comes at 5450 / 5480 / 5520 levels. At the same time, 5380 / 5350 / 5320 will act as major intraday support levels.
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