Indian Stock Market and Nifty Outlook for June 18th, 2010

Indian Share Market and Nifty Outlook and Review for June 18th, 2010 (18/06/2010)

Yesterday NIFTY made a Small White Candlestick, proving the strength lying within. NIFTY had a flattish opening with positive bias of around 5-7 points, and till the first trading session it traded very range bound.

At the mid of the session, a rumor regarding ICICIBANK and SATYAMCOMP dragged the markets and NIFTY made a low of 5206.55 for the day. After the clarification given by ICICIBANK, the stock recovered and also with a good upside movement made by LT led the markets to day’s high and NIFTY made a high of 5285.55.

After crossing its major resistance of 5260. SGX NIFTY was around 6.50 points positive (very range bound) before the market opening and at the same time the other Asian peers were also very flattish.

Net Buying of Rs. 462.60 Crore in Cash Segment and of Rs. 587.72 Crore in F&O Segment leaves a good clue for the next trading day. A bit of bounce back was also observed in the European Markets, after the flattish opening due to bounce in Euro currency after the selling of 10-year and 30-year bonds by Spanish Government.

The trading session was very well supportive for the Swing Traders. Finally, for the day NIFTY closed at 5274.85, again making a close above its previous day’s close of 5233.35.

MACD (Moving Average Directional Index) and RSI (Relative Strength Index) have turned positive. As long as NIFTY closes above 5175 levels, it may prove this rally to be a true one. Traders may take delivery basis position in the stocks turning from their oversold territory and make smart gains.

Nifty Support and Resistance Levels for 18th, June 2010

For the day, intraday resistance for NIFTY comes at 5295 / 5330 / 5352 levels.  At the same time, 5260 / 5230 / 5200 will act as major intraday support levels.

Contributed by Sonal Natani MS(Finance), ICFAI, Hyderabad.