Share market and Nifty Outlook and Review for September 7th, 2010 (07/09/2010)
September 7, 2010 by admin
Filed under Analyst's Corner, nifty outlook
Indian Stock market and Nifty Outlook and Review for September 7th, 2010 (07/09/2010)
and Yesterday, on the Daily Charts NIFTY made a Long White Candlestick, showing a strong Buying pressure. As expected NIFTY had a Gap Up opening of almost 30-35 points and maintained its upside by stepping up till the levels of 5589.40. Yesterday NIFTY made a new 52-Week High, with BANKNIFTY too trading at life time high. The rally was primarily led by the Job Data announced in US, which lost 54,000 nonfarm jobs in August. The decline was smaller than the expectation of 105,000. The rally was particularly led by METAL (STEEL), TEXTILE, AUTO, AUTO ANCILLARY, BANKING & FINANCE and REALTY & INFRA sectors. For whole of the trading day, NIFTY had purely an upside run with almost a gain of 110 points. Finally, for the day it closed at 5576.95, 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 (Interest Rate Decision, Leading Economic Index and Trade Balance) and in Germany (Factory Orders). 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. 184.81 Crore in Cash Segment and of Rs. 1617.02 Crore in F&O Segment by FIIs was witnessed on Monday’s Trading Session.
NIFTY is now trading above its 50-Days SMA (Simple Moving Average) 5411.13 and the 20-Days EMA (Exponential Moving Average) of 5466.85. As long as NIFTY is trading above 5350 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 5590 / 5620 / 5635 levels. At the same time, 5560 / 5540 / 5525 will act as major intraday support levels.
Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
