Nifty and Stock market Outlook and Review for 9th September, 2010 (9/9/2010)
September 9, 2010 by admin
Filed under Analyst's Corner, nifty outlook
Indian Share Market and Nifty Outlook for September 9th, 2010 (9/9/2010)
Yesterday, on the Daily Charts NIFTY made a Doji Candlestick Pattern, proving the presence of uncertainty in the markets. NIFTY opened flat in green with almost 10-15 points of upside. A muted session with a bit profit booking (which also made some of the trading counters extremely volatile) was witnessed. NIFTY again tested its important resistance of 5625 as yesterday, but could not even cross it. For the day, NIFTY made a low of 5567.75 and closed at 5607.85, making it almost 31-Months High.
A bit of profit booking with a muted session may be witnessed tomorrow, as a good set of Economic Data are going to be announced in Japan (Q2 GDP Data), UK (Trade Balance, BoE Interest Rate Decision) and US (August Trade Balance). Only Stock and Sector specific momentum will be observed as markets are trading range bound. Traders are suggested to follow very cautious approach by following Strict Stop Losses in Intraday Trading.
Net Buying of Rs. 281.96 Crore in Cash Segment and Net Selling of Rs. 543.25 Crore in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.
NIFTY is now trading above its 50-Days SMA (Simple Moving Average) 5424.00 and the 20-Days EMA (Exponential Moving Average) of 5429.09. As long as NIFTY is trading above 5470 levels, traders and investors are suggested to avoid positional shorts.
The 20-Days EMA (Exponential Moving Average) has maintained above the 50-Days SMA (Simple Moving Average), supporting the recent positive move. MACD (Moving Average Directional Index) and RSI (Relative Strength Index) have also maintained the positive trend. Traders may take delivery basis position in the stocks turning from their oversold territory and make smart gains.
For the day, intraday resistance for NIFTY comes at 5625 / 5640 / 5655 levels. At the same time, 5580 / 5560 / 5535 will act as major intraday support levels.
Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
