Yesterday, NIFTY made a White Doji Candlestick Pattern, which signals
a lot of uncertainty in the market. Market is itself confused about its
direction. Yesterday, a great tussle between the Bulls and the Bears was
witnessed. The market took off trade on a weak note on the back of negative
global cues. Asian markets dropped following a delay in decision of the Greek
bailout package. NIFTY registered a flat opening with negative bias of
almost 15-20 points. Sentiments weakened further following a profit booking
post day before yesterday’s spectacular rally. Since the opening bell, NIFTY kept
hitting ground and marked an intraday low of 5483.75, but it did not breached
the levels of 5480. However, irrespective of the high volatility, the markets
picked up momentum to touch day’s high. NIFTY marked an intraday high of
5531.40 in the last hour of trade. REALTY & INFRA and POWER Sectors were
the top Gainers of the day, pulling NIFTY higher and higher, while METAL, OIL
& GAS, CONSUMER DURABLES and FMCG Sectors were the biggest losers for the
day. Finally, NIFTY ended at 5521.95 for the day, marking a close above the
important levels of 5520. It was 6-months High closing for the NIFTY after
marking a 28-Months Low in December 2011.
Technically, as mentioned earlier, “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”. The 20-Days EMA has crossed the 200-Days SMA from downside, but
NIFTY is facing a resistance of the level of 5400 on the closing basis. Two –
three consecutive closing above the levels of 5440, may lead NIFTY to the
levels of 5550/5650 too. 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. Yesterday,
NIFTY crossed this level by marking a Gap Up Opening above it and it even
closed above it at 5531.95. If NIFTY manages to close above it again for
two-three consecutive sessions, it may move to the levels of 5646.49 (23.60%
Level of Retracement). The levels of 5220.56 (50.00% Level of Retracement) will
now act as the immediate Support Level for NIFTY.
On the Economic Front, GERMANY will be coming out with its Producer
Price Index for the month of January and Purchasing Manager Index Services for
the month of February. Construction Output for the month of December and Purchasing
Manager Index Services for the month of February will be announced by EUROPEAN MONETARY UNION. U.K. will be
coming out with its Retail Sales for the month of January. Consumer Price Index
and Leading Indicators for the month of January will be announced in U.S.
Q3 FY12 Results Season has
commenced all over the Globe. Some of the important results to be announced
tomorrow in INDIA are of CRISIL and ESSAROIL. LAFARGE SA will be announcing its quarterly results in FRANCE.
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 5279.88, 4963.76 and 5172.19, 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 76.72 and 74.08, respectively. The indicator is moving towards ovebought zone from the oversold zone.
2. MACD (26 Days & 12 Days): Their Values are 194.76 and 188.90, respectively. A short term positive crossover is indicated by both the Moving Averages.
3. +DI: 36.99, -DI: 7.76, ADX: 41.31: 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 (16th February,
2012) Trading Session:
Net Buying of Rs. 184.31 Crore in Cash and of Rs. 679.082 Crore in F&O Segment by FIIs was witnessed on Thursday’s
Trading Session.
In F&O Segment Net Selling of Rs. 329.57 Crore, of Rs. 946.17 Crore and of Rs. 34.78 Crore was witnessed in Index Futures, Stock Futures and Stock
Options, respectively, whereas, Net Buying of Rs. 1989.59Crore was witnessed in Index Options.
NIFTY FEB FUTURE ended at a Premium of 15.85
Points to the Spot NIFTY.
A view on some of the NIFTY 50 Stocks for TOMORROW:
BHEL: Can touch the levels of 292/294, if crosses the level of 286.
HEROMOTOCO: Can touch the levels of 2220/2230, if crosses the level of 2190.
JINDALSTEL: Can touch the levels of 658/662, if crosses the level of 645.
MARUTI: Can touch the levels of 1385/1395, if crosses the level of
1365.
TATAPOWER: Can touch the levels of 116.20/117.50, if crosses the level of 114.50.
COALINDIA: Can dip to the levels of 312/310, if breaches the level of 319.
A positive movement may be witnessed in AVIATION, TEXTILE, SHIPPING, BANKING &
FINANCE and REALTY & INFRA Stocks
for the day.
Pre Market Calls:
BOMDYEING: Buy ONLY IF IT TRADES ABOVE 461 for the TARGETS of472/475, with the STRICT SL of 455.
FORTIS: Buy ONLY IF IT TRADES ABOVE 116 for the TARGETS of 120/122, with the STRICT SL of 114.30.
For the day, intraday resistance for NIFTY comes at 5550 / 5580 / 5620 levels. At the same time, 5480 / 5450 / 5420 will act as major intraday support levels.
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