Stock market and Nifty Outlook and Review for 20th August, 2010 (20/08/2010)
August 20, 2010 by admin
Filed under Analyst's Corner, nifty outlook
Indian Share market and Nifty Outlook and Review for 20th August, 2010 (20/08/2010)
Yesterday, on the Daily Charts, NIFTY made a White Opening Marubozu Candlestick, which signals that it was a typical bull day and strength of the bulls was enough to cause some concern among the bears. Yesterday, NIFTY touched its 42-month high of 5545 by making a high of 5544.70 for the day. NIFTY opened flat with a positive bias and then climbed in a staircase way. All the markets around the globe were surging with hopes for further monetary easing measures bolstering Japan. Yesterday’s move was particularly led by CEMENT, METALS & BANKING Sector. NIFTY for the day made a low of 5478.10 (the opening level) and made a 30-months high closing of 5540.20.
A bit of profit booking may be witnessed tomorrow as the Weekly Jobless Claims in US were at 9-month high and also the measure of Business Activity in the Philadelphia region sank, which signals that the US Economy looks set to grow at a slower pace than earlier year. 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.
Net Buying of Rs. 821.18 Crore in Cash Segment and of Rs. 3934.82 Crore in F&O Segment was witnessed on Thursday’s Trading Session.
5330 is the major Support which has to be breached to prove the weakness, and unless the NIFTY is trading below 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 5560 / 5580 / 5595 levels. At the same time, 5530 / 5510 / 5490 will act as major intraday support levels.
Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
