Stock market and Nifty Outlook and Review for July 29, 2010 (29-07-2010)
July 28, 2010 by admin
Filed under Analyst's Corner, nifty outlook
Nifty Outlook and Review for 29th July, 2010 (29/07/2010)
Yesterday, on the Daily Charts, NIFTY made a Bearish Engulfing Pattern, which signifies that the uptrend has lost momentum and the bears may be gaining strength. After the announcement of Quarterly Results, RELIANCE crashed to the levels of 1018, breaching all its important supports, which also dragged the NIFTY till the levels of 5386.25 for the day.
A good sell-off was witnessed in all the heavyweight stocks, as F&O Expiry is in line tomorrow. NIFTY opened by making a high of 5447.85, but could not sustain and continued to drag. Finally, for the day it closed at 5397.55.
A range bound movement is expected in the next trading session, as F&O Expiry is in line (the last Thursday of the month). Only Stock and Sector specific momentum will be observed as results season is running, but then too traders should follow a cautious approach by following Strict Stop Losses.
Net Buying of Rs. 593.16 Crore in Cash Segment and of Rs. 849.53 Crore in F&O Segment by FIIs was witnessed on Wednesday’s trading Session.
Important Results to be announced Tomorrow are:
ABAN, ALOKTEXT, APOLLOTYRE, ARVIND, MAHABANK, BATAINDIA, BANKBARODA, FEDERALBNK, GHCL, GESHIP, GSPL, HCLTECH, HDIL, HEROHONDA, HEXAWARE, NAGARFERT, NFL, NHPC, NOVARTIS, ONGC, PETRONET, SAIL, SIEMENS, TATAGLOBAL, ULTRACEMCO.
5300 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. It was the fourth continuous closing of NIFTY above 5400 levels; hence it may touch the levels of 5500 too in the coming sessions, continuing the positive trend.
The 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 5400 / 5416 / 5430 levels. At the same time, 5370 / 5355 / 5330 will act as major intraday support levels.
Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
