Share Market and Nifty Outlook and Review for 23rd August, 2010
August 23, 2010 by admin
Filed under Analyst's Corner, nifty outlook
Indian Stock Market and Nifty Outlook and Review for 23rd August, 2010
On Friday, NIFTY made a Small Black Candlestick, having a higher lower shadow, as markets witnessed a selling pressure. NIFTY touched its 42-months high of 5545 by making a high of 5544.70 for the day. NIFTY opened flat with a negative bias and traded highly volatile for whole of the trading session. BANKING stocks witnessed a good profit booking, but at the same time METALS, REALTY & INFRA, and PHARMA sector outperformed the market. For the day NIFTY made a low of 5513.35 and closed at 5530.65.
A range bound session may be expected on Monday. A good amount set of Economic Data are to be announced in the Euro region, which may decide the further move of the market. Only Stock and Sector specific momentum will be observed as markets are trading range bound. Traders are suggested to follow a cautious approach by following Strict Stop Losses in Intraday Trading.
All the major International Indices bounced back from their crucial support levels which may now invite a good up run. For the next week, a good trading momentum will be observed in Sector Specific and other specific stocks, but then too traders should follow a cautious approach by following strict Stop Losses.
On the Global front, in US, unemployment and housing reports Data are going to be announced. In Europe, Global mining giant BHP is going to report annual results, cosmetics group L’Oreal too is going to release second-quarter sales Data. In Asia, Japan’s CPI, BHP Billiton’s earnings outlook take center stage as investors look for more clues about the global economy. And Australian election results could impact mining stocks.
Net Buying of 662.86 Crore in Cash Segment and of 787.83 Crore in F&O Segment by FIIs was witnessed on Friday’s Trading Session.
5365 is the major Support which has to be breached to prove the weakness, and unless the NIFTY is trading above this level, the Markets are positive. 20-Days EMA (Exponential Moving Average) has crossed the 50-Days SMA (Simple Moving Average), supporting the recent positive move. MACD (Moving Average Directional Index) and RSI (Relative Strength Index) have turned positive. 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 5550 / 5565 / 5580 levels. At the same time, 5515 / 5500 / 5480 will act as major intraday support levels.
Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
