Stock Market View and nifty Outlook for January 30th, 2012 (30/01/2012)
Share Market View and nifty Outlook for January 30th, 2012 (30/01/2012)
Technically, a Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. For the day, NIFTY however marked a high of 5217.00, and crossed the 200-Days SMA of 5204.92 too, but it closed below it at 5204.70. The level of 200-Days SMA also acts as a very good resistance for NIFTY on the closing basis right now.
A Fibonnaci Retracement Level is being drawn from the High of 6338.50 (08th November, 2010) to the 28-Months Low marked 4531.15 by NIFTY (21st December, 2011). Now, the level of 5220.56 (50.00% Level of Retracement) is the next resistance level to be tested by NIFTY, the 200-Days SMA of 5208.32 also lies at the same point. The levels of 4957.07 (61.80% Level of Retracement) will now act as the immediate Support Level for NIFTY.
Investors are suggested to avoid the markets to invest at this time; however, traders are suggested to take the advantage of Swing Trading, which will appear many times in between.
On the Economic Front, JAPAN will be coming out with its Overall Household Spending, Unemployment Rate and Industrial Production for the month of December and Nomura / JMMA Manufacturing Purchasing Manager Index for the month of January. Retail Sales for the month of December and Consumer Price Index for the month of January will be announced in GERMANY. U.S. will be coming out with its Personal Consumption Expenditures and Personal Income for the month of December.
Q3 FY12 Results Season has commenced in India. Some of the important results to be announced tomorrow are of 3MINDIA, AJMERA REALTY, ALBK, BALRAMCHIN, EID PARRY, GHCL, GLENMARK, GMDC, HAVELLS, INDIABULLS FINANCE, INDIAN BANK, INGERSOLL RAND, KANSAI NEROLAC, LICHSGFIN, MAHINDRA LIFESPACE, MCLEODRUSS, NFL, NOVARTIS, ORIENTAL BANK, SHREE RAMA MULTI, UNIENTER and UNIPHOS.
Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to take advantage of this short term move, which may pay off excellent returns.
For the day, intraday resistance for NIFTY comes at 5220 / 5250 / 5280 levels. At the same time, 5180 / 5150 / 5120 will act as major intraday support levels.
Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
Equity Research Analyst, Indore