Yesterday,
NIFTY made a Long White Candlestick
Pattern, signaling a normal buying pressure and the buyers were in control
throughout the day. The April series Futures and Options contract settlement
turned out to be an encouraging event for the Indian markets as bulls showed
strong buying fervor blue chip stocks. Hefty short covering in the dying hours
ahead of the series expiry further stoked the benchmarks to settle around the
high point of the day. NIFTY made a strong positive opening of almost 20
points. The NSE’s 50-share broadly followed index NIFTY gained by about 80
points to surpass its psychological 5,900 support level, and marked a high of
5924.60. The broader markets too traded with traction and ended the session in
the green. Sentiments also remained upbeat as investors expect that the Reserve
Bank of India will cut interest rates by 25-50 basis points on May 3, 2013 in
its monetary policy meet as WPI inflation eased to 3-year low in March. Markets
also remained in comfort zone after the Finance Ministry has pitched for rating
upgrade with Standard & Poor’s. At present, India has a sovereign rating of
‘BBB-’ which is the last investment grade. Last August, the rating agency revised
the outlook on India’s long-term credit rating to ‘negative’ from ‘stable’. AUTO,
HEALTHCARE & PHARMA, OIL & GAS, METAL and BANKING & FINANCE Sectors
again helped NIFTY to push southwards. Whereas, IT, RELATY & INFRA and
CONSUMER DURABLES Sectors were on the down side. Finally, for the day, NIFTY closed
at 5916.30, maintaining the levels of 5900 to march ahead in the forth-coming
sessions.
Technically, a Fibonnaci Retracement Level is being drawn
from the Low of 4770.35 (04th June, 2012) to the High marked 6111.80
by NIFTY (29th January, 2013). NIFTY made a high of 5924.60 on 25th
April, 2013 and surpassed the levels of 5795.22 (23.60% Level of Retracement) on
closing basis after getting closed at 5916.30 levels. Now, the level of 5795.22
(23.60% Level of Retracement) is acting as the next immediate support level to
be tested by NIFTY. It has been on the northwards march since it has given a
breakout above the trendline marked from the high of 6111.80 (29th
January, 2013).
NIFTY has now crossed all its moving averages of 20-Days
EMA (Exponential Moving Average), 50-Days SMA (Simple Moving Average) and
200-Days SMA since 18th April, 2013 on closing basis and also the
20-days EMA has crossed the 200-Days SMA from downside, which is again another
Bullish Signal. Now, it is also on the verge to cross the 50-Days SMA. When a
Short Term Moving Average crosses a Longer Term Moving Average from downside,
it is considered to be a Bullish Signal. As predicted earlier – “Now, the level of 5850/5890 can be touched
by NIFTY if it sustains above 5680”. NIFTY marked a high of 5924.60
yesterday and even closed above the levels of 5900. Now, if NIFTY sustains
above the levels of 5765, levels of 6000/6050 are on the cards.
As,
Earnings Season has begun all over the Globe, some of the Quarterly Earnings on
which focus has to be given are:
FRANCE: Alcatel Lucent SA and Total SA.
U.S.: The Goodyear Tire & Rubber Co.
INDIA: Castrol India, Hero MotoCorp, ICICI Bank, Indiabulls
Power, Jindal South West Holdings, LIC Housing Finance, Maruti Suzuki, Mastek,
Merck, Raymond, Siemens, Sterlite Tech, and Vijaya Bank.
Some of
the Economic Happenings on which a Glance is necessary are:
CHINA: MNI Business Sentiment Indicator for the month of April.
JAPAN: BoJ Interest Rate Decision.
EUROPE: Import Price Index for the month of March (MoM) &
(YoY), Consumer Confidence for the month of April, M3 Money Supply and Private
Loans for the month of March.
U.S.: Q1 Gross Domestic Product, Personal Consumption
Expenditure Prices and Reuters / Michigan Consumer Sentiment Index for the
month of April.
Small and quick profits should be booked either on Short
side or on Long side. Traders are suggested to trade cautiously by following
Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested
to make good use of their money and hunt on for Jewels which are right now
trading either at their 52-week’s low level or at the life time low levels.
What does Indicators Say?
1. RSI (14 Days & 9 Days): The values are 65.74 and 53.93, respectively. The indicator is now heading towards its Overbought Zone.
2. MACD (26 Days & 12 Days): Their Values are 11.31 and 63.23, respectively. The indicator is now is now heading towards its Overbought Zone.
3. +DI: 35.40, -DI: 18.19, ADX: 23.93: The Positive Directional Index has moved above the Negative Directional Index, signaling a Buyer's bias Market movement and the Average Directional Index is above 20 and below 25, indicates that the market is in a Gray Zone.
Some Trading Stats of Thursday’s (25th April, 2013)
Trading Session:
Net Buying of Rs. 1449.70 Crore in NSE, BSE and MCX-SX in Capital
Market Segment by FIIs and Net
Selling of Rs. 1269.43 Crore in NSE, BSE and MCX-SX in Capital
Market Segment by DIIs was witnessed on Thursday’s Trading Session.
NIFTY APR FUTURE ended at a Discount of 6.25
Points to the Spot NIFTY.
Trading Levels for some of the NIFTY 50 Stocks for TODAY:
|
STOCKS*
|
LEVELS
|
SL
|
TGT 1
|
TGT 2
|
|
ACC
|
1255
|
1245
|
1275
|
1290
|
|
BAJAJ-AUTO
|
1845
|
1830
|
1870
|
1880
|
|
BANKBARODA
|
712
|
704
|
726
|
730
|
|
CAIRN
|
300
|
297
|
306
|
308
|
|
CIPLA
|
410
|
406
|
420
|
422
|
|
COALINDIA
|
318
|
315
|
324
|
327
|
|
GRASIM
|
2990
|
2960
|
3045
|
3080
|
|
M&M
|
912-914
|
905
|
932
|
936
|
|
TATASTEEL
|
313-314
|
310
|
322
|
325
|
|
DLF
|
242-241
|
243
|
236
|
234
|
|
HCLTECH
|
718
|
725
|
704
|
700
|
* BLUE =
BUY RED = SELL
For the day, intraday resistance for NIFTY (SPOT) comes at 5945 / 5975 / 6000 levels. At the same time, 5880 / 5850 / 5820 will act as major intraday support levels.
For the day, intraday resistance for NIFTY (FUTURE) comes at 5930 / 5955 / 5980 levels. At the same time, 5890 / 5860 / 5830 will act as major intraday support levels.
For the day, intraday resistance for BANK NIFTY (FUTURE) comes at 12800 / 12900 / 13000 levels. At the same time, 12620 / 12500 / 12400 will act as major intraday support levels.
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