Stock Market and Nifty Outlook for June 25, 2010
June 24, 2010 by admin
Filed under Analyst's Corner, nifty outlook
NIFTY OUTLOOK FOR 25th JUNE 2010 (25/06/2010)
Yesterday, on the daily charts, NIFTY made a Doji Candlestick, signaling the presence of uncertainty in the markets. SGX NIFTY was around 14 points negative (giving a negative clue) before the market opening and at the same time the other Asian peers were mixed.
Till the second half of the trading session, markets were very range bound (was only 14-15 points positive) and only stock specific movements were observed. For the day, NIFTY made a high of 5348.30. In the second half, after the opening of European Markets, markets observed a good selling pressure and made a low of 5284.55, but it didn’t break its important support of 5280. NIFTY again bounced back during the closing hour, with heavyweights showing good strength.
Finally, for the day NIFTY managed to close at 5320.60, again the closing above 5315 levels. As expected, profit booking was seen in the stocks due to F&O Expiry. Markets may be a bit range bound tomorrow, with announcement of US GDP Data to be in evening.
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. 5315 is the major resistance to be crossed by NIFTY to prove a real bull run in the markets. Closing above this level for continuous 2-3 trading sessions will support this view.
The 20-Days EMA (Exponential Moving Average) has crossed the 50-Days SMA (Simple Moving Average), giving a positive clue for short term. 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.
Nifty Support and Resistance Levels for 25th June, 2010 (25/06/2010)
For the day, intraday resistance for NIFTY comes at 5345 / 5365 / 5385 levels. At the same time, 5300 / 5280 / 5268 will act as major intraday support levels.
Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
