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

Technically, a Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Even a Negative Crossover between the 50-Days SMA and 20-Days EMA has developed since, which signals selling pressure to creep in coming trading sessions. NIFTY has crossed its 20-Days EMA yesterday, on the closing basis, but it is still trading below its 50-Days SMA.

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). Still the investors should wait for fruitful results ahead and stay away from the markets. The level of 4550 will now act as the strong support level on closing basis for NIFTY. The level of 4800 as mentioned earlier was acting as a strong resistance for NIFTY, since last one month, which it crossed successfully on the closing basis yesterday.

Now, the level of 4950 (61.80% Level of Retracement) will act as an important resistance for it. 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, U.K. will be coming out with its Producer Price Index – Input and Producer Price Index – Output from the month of December. Trade Balance for the month of November will be announced by EUROPEAN MONETARY UNION. U.S. will be announcing its Trade Balance for the month of November, Import Price Index for the month of December and Reuters/Michigan Consumer Sentiment Index for the month of January.

Q2 FY12 Results Season has commenced in India. Some of the important results to be announced are of SINTEX and CMC.

Weakening Rupee, Deteriorating European Economy Conditions, Uncertainties in Indian Corporate and Finance Scenario are acting as major triggers of the massive sell off, which is resulting in development of Fear among the Indian and International Investors.

Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to stay from the markets right now, as market will give better chances ahead for Bottom Fishing and earning handsome returns thereafter.

For the day, intraday resistance for NIFTY comes at 4850 / 4880 / 4920 levels. At the same time, 4800 / 4780 / 4750 will act as major intraday support levels.

Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
Equity Research Analyst, Indore

Technically, a Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Even a Negative Crossover between the 50-Days SMA and 20-Days EMA has developed since, which signals selling pressure to creep in coming trading sessions. NIFTY has crossed its 20-Days EMA yesterday, on the closing basis, but it is still trading below its 50-Days SMA.

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). Still the investors should wait for fruitful results ahead and stay away from the markets. The level of 4550 will now act as the strong support level on closing basis for NIFTY. The level of 4800 as mentioned earlier was acting as a strong resistance for NIFTY, since last one month, which it crossed successfully on the closing basis yesterday.

Now, the level of 4950 (61.80% Level of Retracement) will act as an important resistance for it. 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 Money Supply M2+CD, Eco watchers Survey: Outlook, Eco Watchers Survey: Current and Machine Order Tools for the month of December. Consumer Price Index and Producer Price Index for the month of December will be coming out in CHINA. GERMANY will be announcing its Consumer Price Index for the month of December.

Industrial Production and Manufacturing Production for the month of November, BOE Asset Purchase Facility for the month of January and also BoE (Bank of England) will be announcing its Interest Rate Decision in U.K. EUROPEAN MONETARY UNION will be coming out with its Industrial Production for the month of November and also ECB (European Central Bank) will be coming out with its Interest Rate Decision.

Initial Jobless Claims, Continuing Jobless Claims, Business Inventories for the month of November, NIESR GDP Estimate (3M), Monthly Budget Statement and Retail Sales for the month of December will be announced in U.S. INDIA will be coming out with its IIP (Index of Industrial Production) Data for the month of November.

Q2 FY12 Results Season will be commencing from tomorrow. Some of the important results to be announced are of INFY, HDFC, DCB, and TTK PRESTIGE.

Weakening Rupee, Deteriorating European Economy Conditions, Uncertainties in Indian Corporate and Finance Scenario are acting as major triggers of the massive sell off, which is resulting in development of Fear among the Indian and International Investors.

Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to stay from the markets right now, as market will give better chances ahead for Bottom Fishing and earning handsome returns thereafter.

For the day, intraday resistance for NIFTY comes at 4880 / 4920 / 4950 levels. At the same time, 4820 / 4780 / 4750 will act as major intraday support levels.

Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
Equity Research Analyst, Indore

Yesterday, NIFTY made a Bullish Hammer Candlestick Pattern.  This formation suggests that the previous bearish sentiment is causing the short traders to feel increasingly uneasier with their bearish positions. This formation requires confirmation of the implied trend reversal by a white candlestick, a large gap up or a higher close on the next trading day. NIFTY had a weak opening with almost 25-30 points in the negative territory. Heavy selling in the broader markets was witnessed with Stocks dumping almost 10-20% with great volumes, due to which NIFTY marked a low of 4555.90 for the day and could not made a move above the levels of 4600.

BANKING & FINANCE and REALTY & INFRA were the major culprits of this panic selloff. NIFTY dipped to the 28-Months Low level. A very sluggish movement was witnessed till the last trading hour of the day. NIFTY reverted form the day’s low level and moved slowly and till the levels of 4600 and finally it maintained above it and marked a high of 4623.15 for the day. CAPITAL GOODS, POWER and METAL were the other sectors which were the laggards for the day. NIFTY finally ended at 4613.10, just above the important physiological level of 4600.

Net Selling of Rs. 450.37 Crore in Cash and of Rs. 1077.16 Crore in F&O Segment by FIIs was witnessed on Monday’s Trading Session.

Technically, a Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Even a Negative Crossover between the 50-Days SMA and 20-Days EMA has developed since, which signals selling pressure to creep in coming trading sessions. NIFTY has again dipped below its 20-Days EMA and 50-Days SMA on the closing basis.

A Fibonnaci Retracement Level is being drawn from the High of 6338.50 (08th November, 2010) to the 28-Months Low marked 4555.90 by NIFTY (20th December, 2011). Still the investors should wait for fruitful results ahead and stay away from the markets. With deteriorating International Economic Scenario NIFTY even breached its important support level of 4650 on closing basis, which was till now acting as a good support level. Now, the level of 4800 is the immediate resistance for NIFTY on Closing Basis. 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 All Industry Activity Index, Coincident Index, and Leading Economic Index for the month of October and Merchandise Trade Balance for the month of November. Nationwide Consumer Confidence for the month of November, Gfk Consumer Confidence and CBI Distributive Trades Survey for the month of December will be announced in UK. GERMANY will be announcing its Producer Price Index for the month of November, IFO – Expectations, IFO – Current Assessment for the month of December and Gfk Consumer Confidence Survey for the month of January. Building Permits and Housing Starts for the month of November will be announced in US.

Weakening Rupee, Deteriorating European Economy Conditions, Uncertainties in Indian Corporate and Finance Scenario are acting as major triggers of the massive sell off, which is resulting in development of Fear among the Indian and International Investors. Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to stay from the markets right now, as market will give better chances ahead for Bottom Fishing and earning handsome returns thereafter.

NIFTY is again trading below all its moving averages. The 200-Days SMA (Simple Moving Average), 50-Days SMA and 20-Days EMA (Exponential Moving Average) is at 5313.71, 4992.30 and 4844.24, respectively. The 14-Days RSI (Relative Strength Index) and 26-Days MACD (Moving Average Convergence and Divergence) are now heading towards the oversold zone one again.

For the day, intraday resistance for NIFTY comes at 4650 / 4680 / 4720 levels. At the same time, 4580 / 4550 / 4520 will act as major intraday support levels.

Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
Equity Research Analyst, Indore

Yesterday, NIFTY made a Black Opening Marubozu Candlestick Pattern.  This shows that the day opened and market continuously went down but did not close at the low of the day and thus created a lower shadow. It was a day for bears and such a bearish rally should cause concern among the bulls. A disastrous set of IIP numbers for the month of October send Dalal Street in a tizzy. This was coupled by weak European markets.

After witnessing a positive opening, the NIFTY slipped in red and kept adding to losses till closing bell. NIFTY opened with excellent gains of almost 40 points. However, weak sentiments pulled down the market in the negative zone, withing couple of hours. Later, IIP numbers, which came in below estimates, weakened the sentiment further. In addition, a weak opening marked on the European markets dragged the key indices deeper in red. Since then, the major indices kept losing ground till closing bell. Industrial output growth dropped in October to a worst than 28-month low at -5.1%, indicating a severe slowdown in the country’s growth trajectory.

NIFTY marked a low of 4755.55 for the day, breaching important support levels of 4850, 4820 and 4780. It felt almost 150 points from the day’s high level of 4910.25. METAL, CAPITAL GOODS and AUTO were the laggards for the day, whereas IT Sector was the only lone sector to close in Green. For the day, closed above the crucial support level of 4764.60 at 4750.

Net Selling of Rs. 428.30 Crore in Cash and of Rs. 1580.05 Crore in F&O Segment by FIIs was witnessed on Monday’s Trading Session.

Technically, a Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Even a Negative Crossover between the 50-Days SMA and 20-Days EMA has developed since, which signals selling pressure to creep in coming trading sessions. NIFTY has again dipped below its 20-Days EMA and 50-Days SMA on the closing basis. A Fibonnaci Retracement Level is being drawn from the High of 6338.50 (08th November, 2010) to the 20-Months Low marked 4639.10 by NIFTY (24th November, 2011).

NIFTY has again reverted from the level of 61.80% (5039.54) of Retracement marked since last two trading sessions. As mentioned in day before yesterday’s report “The lower trendline marked from the low of 4720 marked on 26th August, 2011 is now acting as a Strong Support for NIFTY on closing basis, if it gets breach NIFTY may dip to the levels of 4750/4650 in the coming trading sessions”. Yesterday, NIFTY after breaching this level marked a low of 4755.55 for the day. Still the markets all over the Globe are doubtful about the clarity of the European Debt Crisis.

A positive action is being eagerly awaited from PIIGS Countries all around the Globe. Hence, still the traders and investors should wait for fruitful results ahead. With deteriorating International Economic Scenario NIFTY even breached its important support level of 4720, which was acting as a Strong Support level since the month of August. The level of 4650 is acting as a good support level on the closing basis 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, Bank of Japan will be coming out with its Monthly Economic Survey in JAPAN. UK will be coming out with its DCLG House Price Index for the month of October, Retail Price Index, Consumer Price Index, Core Consumer Price Index and RICS Housing Price Balance for the month of November. ZEW Survey – Economic Sentiment and ZEW Survey – Current Situation for the month of December will be announced in GERMANY. EUROPEAN MONETARY UNION will be coming out with ZEW Survey – Economic Sentiment for the month of December. Business Inventories for the month of October, Retail Sales and IBD/TIPP Economic Optimism for the month of November, and also Federal Reserve will be announcing its Interest Rate Decision in US.

Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to stay from the markets right now, as market will give better chances ahead for Bottom Fishing and earning handsome returns thereafter.

NIFTY is again trading below its moving averages. The 200-Days SMA (Simple Moving Average), 50-Days SMA and 20-Days EMA (Exponential Moving Average) is at 5331.58, 5015.31 and 4934.54, respectively. The 14-Days RSI (Relative Strength Index) and 26-Days MACD (Moving Average Convergence and Divergence) are now heading towards the oversold zone one again.

For the day, intraday resistance for NIFTY comes at 4780 / 4820 / 4850 levels.  At the same time, 4750 / 4720 / 4680 will act as major intraday support levels.

Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
Equity Research Analyst, Indore

On Friday, NIFTY made a Black Doji Candlestick Pattern. Continuing its meltdown for the second day in a row, the market closed over 1.5% down-recovering from earlier losses- as the make-or-break EU summit failed to fully beat back the contagion concerns of debt crisis. In a highly volatile trade, market opened with huge losses. NIFTY witnessed a Gap Down Opening of almost 72 points.

NIFTY marked a low of 4841.75 for the day, breaching the support level of 4850, but maintained the level of 4820. Markets staged a smart recovery, wiping off major losses as buying emerged around support levels. Despite the turnaround in overall trend, the key NIFTY failed to enter the positive terrain. All the Sectoral indices, led by CAPITAL GOODS and AUTO, closed in the negative zone, with losses of up to 2.71% and 2.33% respectively.

ENGINEERING & INFRA Stocks were hammered, reflecting the edginess among investors over potential contraction in the index of industrial production (IIP) growth index for October. For the day, NIFTY marked a high of 4918.35, and closed above the crucial support level of 4850 at 4866.70.

Net Selling of Rs. 248.57 Crore in Cash and of Rs. 2476.16 Crore in F&O Segment by FIIs was witnessed on Friday’s Trading Session.

Technically, a Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Even a Negative Crossover between the 50-Days SMA and 20-Days EMA has developed since, which signals selling pressure to creep in coming trading sessions. NIFTY has again dipped below its 20-Days EMA and 50-Days SMA on the closing basis. A Fibonnaci Retracement Level is being drawn from the High of 6338.50 (08th November, 2010) to the 20-Months Low marked 4639.10 by NIFTY (24th November, 2011).

NIFTY has again reverted from the level of 61.80% (5039.54) of Retracement marked since last two trading sessions. The lower trendline marked from the low of 4720 marked on 26th August, 2011 is now acting as a Strong Support for NIFTY on closing basis, if it gets breach NIFTY may dip to the levels of 4750/4650 in the coming trading sessions. Still the markets all over the Globe are doubtful about the clarity of the European Debt Crisis.

A positive action is being eagerly awaited from PIIGS Countries all around the Globe. Hence, still the traders and investors should wait for fruitful results ahead. With deteriorating International Economic Scenario NIFTY even breached its important support level of 4720, which was acting as a Strong Support level since the month of August. The level of 4650 is acting as a good support level on the closing basis 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 Tertiary Industry Index for the month of October, Consumer Confidence Index and Machine Tool Orders for the month of November. Wholesale Price Index for the month of November will be announced in GERMANY. US will be announcing its Monthly Budget Statement for the month of November. INDIA will be coming out with IIP Data (Index of Industrial Production) for the month of October 2011.

Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to stay from the markets right now, as market will give better chances ahead for Bottom Fishing and earning handsome returns thereafter.

NIFTY has again dipped below its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 4952.42 and 5016.72 and is still trading below its 200-Days SMA of 5335.48. The 14-Days RSI (Relative Strength Index) is heading towards its overbought zone now, but with every jerk it gets inclined towards the oversold zone. The 26-Days MACD (Moving Average Convergence and Divergence) has also reverted from its oversold zone.

For the day, intraday resistance for NIFTY comes at 4880 / 4920 / 4950 levels. At the same time, 4820 / 4780 / 4750 will act as major intraday support levels.

Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
Equity Research Analyst, Indore

Yesterday, NIFTY made a White Candlestick Pattern, with a longer higher shadow. It was a bit sluggish session for the day, NIFTY started the day with a mild gain of 10 points only. It was a range bound movement for the market till the morning session, but before the opening of the European Markets it marked an intraday low of 5032.25. But with the Strong Opening of European Markets, NIFTY again bounced back from the day’s low entering into Green Territory and marked an intraday high of 5099.25.

However, during the late afternoon session, NIFTY again slipped from the higher levels on back of heavy selling in healthcare stocks and closed off the day’s highs, in green. IT and TEXTILE Sectors were the major gainers for the day, whereas, PHARMA Sector was the major loser for the day. For the day NIFTY ended at 5062.60.
Net Buying of Rs. 135.36 Crore in Cash and of Rs. 745.24 Crore in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.

Technically, a Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Even a Negative Crossover between the 50-Days SMA and 20-Days EMA has developed since, which signals selling pressure to creep in coming trading sessions. Yesterday, NIFTY has crossed its 20-Days EMA and 50-Days SMA on the closing basis.

A Fibonnaci Retracement Level is being drawn from the High of 6338.50 (08th November, 2010) to the 20-Months Low marked 4639.10 by NIFTY (24th November, 2011). Yesterday, NIFTY crossed the level of 61.80% (5039.54) of Retracement marked by marking a high of 5099.25 for the day and also closed above it at 5062.60. If this level is crossed successfully by marking consecutive 2-3 closing above it, it may also touch the level of 5180/5250 in the coming trading sessions. Still the markets all over the Globe are doubtful about the clarity of the European Debt Crisis.

A positive action is being eagerly awaited from PIIGS Countries all around the Globe. Hence, still the traders and investors should wait for fruitful results ahead. With deteriorating International Economic Scenario NIFTY even breached its important support level of 4720, which was acting as a Strong Support level since the month of August. The level of 5650 is acting as a good support level on the closing basis 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 Q3 Gross Domestic Product, Money Supply M2+CD, Eco Watchers Survey: Current and Eco Watchers Survey: Outlook for the month of November. BoE Asset Purchase Facility and BoE Interest Rate Decision will be announced in UK. EUROPEAN MONETARY UNION will be coming out with ECB Interest Rate Decision. Continuing Jobless Claims, Initial Jobless Claims and Wholesale Inventories for the month of October will be announced in US.

Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to stay from the markets right now, as market will give better chances ahead for Bottom Fishing and earning handsome returns thereafter.

NIFTY has crossed its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 4963.32 and 5016.34, respectively on the closing basis, but is still trading below its 200-Days SMA of 5341.25. The 14-Days RSI (Relative Strength Index) is heading towards its overbought zone now, but with every jerk it gets inclined towards the oversold zone. The 26-Days MACD (Moving Average Convergence and Divergence) has also reverted from its oversold zone.

For the day, intraday resistance for NIFTY comes at 5080 / 5120 / 5150 levels.  At the same time, 5020 / 4980 / 4950 will act as major intraday support levels.

Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
Equity Research Analyst, Indore

Yesterday, NIFTY made a Black Candlestick Pattern, with a higher upper shadow. Markets had a smooth upswing, free of volatility and drama. The central banks of Europe, US, Britain, Canada, Japan and Switzerland on Wednesday reduced rates on the borrowing cost of dollars. The move aimed to make loans cheaper so that banks can continue to operate smoothly.

Globally, market cheered this dramatic attempt made by central banks to pump more money into the financial system. Due to Positive News Flow all around the globe and robust closing of European and American Markets last night, NIFTY witnessed an amazing Gap Up Opening of almost 140 points. Immediately within seconds of opening it marked an intraday high of 5011.90. After opening near intraday highs, NIFTY trimmed initial gains marginally and moved in a tight range till the closing bell. METAL, BANKING & FINANCE and REALTY & INFRA Sectors were the biggest gainers for the day, whereas, PHARMA Sector was the biggest laggard for the day. For the day NIFTY ended at 4936.85.

Net Buying of Rs. 687.26 Crore in Cash and of Rs. 2923.42 Crore in F&O Segment by FIIs was witnessed on Thursday’s Trading Session.

Technically, a Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Again a Negative Crossover between the 50-Days SMA and 20-Days EMA has developed since last two days, which signals selling pressure to creep in coming trading sessions. NIFTY is once again trading much below its 20-Days EMA, 50-Days SMA and 200-Days SMA. A Fibonnaci Retracement Level is being drawn from the High of 6338.50 (08th November, 2010) to the 20-Months Low marked 4639.10 by NIFTY (24th November, 2011).

The lower trendline marked form the low of 4720 marked on 26th August, 2011 is acting as a Strong Resistance right now for NIFTY on closing basis, if it gets cross NIFTY May touch the levels of 5030 in the coming trading sessions. Due to Huge Gap Up Opening NIFTY marked a high of 5011.90 for the day and crossed both the 50-Days SMA and 20-Days EMA but on the closing basis, NIFTY slipped below 50-Days SMA and closed above the 20-Days EMA. Still the markets all over the Globe are doubtful about the clarity of the European Debt Crisis. A positive action is being eagerly awaited from PIIGS Countries all around the Globe. Hence, still the traders and investors should wait for fruitful results ahead.

With deteriorating International Economic Scenario NIFTY even breached its important support level of 4720, which was acting as a Strong Support level since the month of August. Now, the level of 5039.54 (61.80% Level of Retracement) is acting as a crucial resistance, whereas, the level of 5650 is acting as a good support level on the closing basis 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, UK will be coming out with its Halifax House Prices, PMI Construction for the month of November. Producer Price Index for the month of November will be announced in EUROPEAN MONETARY UNION. US will be announcing its Unemployment Rate, Nonfarm Payrolls, Average Weekly Hours and Average Hourly Earnings for the month of November.

Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to stay from the markets right now, as market will give better chances ahead for Bottom Fishing and earning handsome returns thereafter.

NIFTY has crossed its 20-Days EMA (Exponential Moving Average) of 4836.59 on the closing basis, but is still trading below its moving averages of 50-Days SMA (Simple Moving Average) and 200-Days SMA of 5019.41 and 5345.44, respectively. The 14-Days RSI (Relative Strength Index) has again reverted from its Oversold zone, but with every jerk it gets inclined towards the oversold zone. The 26-Days MACD (Moving Average Convergence and Divergence) is still trading in the oversold zone.

For the day, intraday resistance for NIFTY comes at 4950 / 4980 / 5020 levels. At the same time, 4880 / 4850 / 4820 will act as major intraday support levels.

Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
Equity Research Analyst, Indore

Yesterday, NIFTY made a White Candlestick Pattern.  Equities rose smartly, wiping out initial losses, as investors heaved a collective sigh of relief over the country’s economic health after GDP data for September met estimates. NIFTY marked a gap down start of almost 35-40 points, the market gained strength during afternoon session due to strong buying as investors judged the fall market over the past few weeks overdone.

Further, a data showed gross domestic product (GDP) growth rate of 6.9% in the July-September quarter this fiscal, which was in line with the market expectations and kept the market mood cheerful. The market tripped slightly on the red carpet again during late afternoon session, but brushed away losses to regain uptrend in the pre-close session. NIFTY marked an intraday high of 4851.55 and a low of 4754.80.

NIFTY recovered almost 95 points from the day’s low level. It was a total roller coaster ride for the markets after the announcement of Q2 GDP Data, markets touched the day’s high and after the opening of European Markets, witnessed a sell off again in sync with them. But in the end, Markets again bounced back near to the day’s high level. CONSUMER DURABLES was the laggard for the day, whereas, OIL & GAS Sector was the major gainer for the day. For the day NIFTY ended at 4832.05, below the crucial level of 4850.

Net Selling of Rs 34.12 Crore in Cash and of Rs. 788.24 Crore in F&O Segment by FIIs was witnessed on Wednesday’s Trading Session.

Technically, a Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Again a Negative Crossover between the 50-Days SMA and 20-Days EMA has developed since last two days, which signals selling pressure to creep in coming trading sessions. NIFTY is once again trading much below its 20-Days EMA, 50-Days SMA and 200-Days SMA. A Fibonnaci Retracement Level is being drawn from the High of 6338.50 (08th November, 2010) to the 20-Months Low marked 4639.10 by NIFTY (24th November, 2011).

The lower trendline marked form the low of 4720 marked on 26th August, 2011 is acting as a Strong Resistance right now for NIFTY on closing basis, if it gets cross NIFTY May touch the levels of 5030 in the coming trading sessions. Still the markets all over the Globe are doubtful about the clarity of the European Debt Crisis. A positive action is being eagerly awaited from PIIGS Countries all around the Globe. Hence, still the traders and investors should wait for fruitful results ahead.

With deteriorating International Economic Scenario NIFTY even breached its important support level of 4720, which was acting as a Strong Support level since the month of August. Now, the level of 5039.54 (61.80% Level of Retracement) is acting as a crucial resistance, whereas, the level of 5650 is acting as a good support level on the closing basis 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 Q3 Capital Spending, Monetary Base and Vehicle Sales for the month of November. Manufacturing PMI and HSBC Manufacturing PMI for the month of November will be announced in CHINA. UK will be coming out with its Halifax House Prices and Purchasing Manager Index Manufacturing for the month of November. Purchasing Manager Index Manufacturing for the month of November will be announced in GERMANY. EUROPEAN MONETARY UNION will be announcing its Purchasing Manager Index Manufacturing for the month of November.

Continuing Jobless Claims, Initial Jobless Claims, Construction Spending for the month of October, ISM Manufacturing, ISM Prices Paid for the month of November and Total Vehicle Sales for the month of December will be announced in US.

Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to stay from the markets right now, as market will give better chances ahead for Bottom Fishing and earning handsome returns thereafter.

NIFTY is trading much below all its moving averages of 20-Days EMA (Exponential Moving Average), 50-Days SMA (Simple Moving Average) and 200-Days SMA of 4832.14, 5022.36 and 5347.03, respectively. The 14-Days RSI (Relative Strength Index) has again reverted from its Oversold zone, but with every jerk it gets inclined towards the oversold zone. The 26-Days MACD (Moving Average Convergence and Divergence) is still trading in the oversold zone.

For the day, intraday resistance for NIFTY comes at 4850 / 4880 / 4920 levels. At the same time, 4780 / 4750 / 4720 will act as major intraday support levels.

Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
Equity Research Analyst, Indore

On Friday, NIFTY again made a Bullish Hammer Candlestick Pattern, which reduces the previous bearish sentiment causing the short traders to feel increasingly uneasy with their bearish positions. Equities dropped on Friday, foreshadowing a gloomy weekend, as investors chose to reduce risk in their portfolios after euro-zone debt crisis failed to reach a conclusive solution.

Lingering concerns of slowing domestic growth, rising interest and cost pressures compounded with rupee slumping to a near-32 month low impacted overall confidence. Reflecting weakness in Asian shares, the market started trade on a bleak note and plunged deeper to hit six-week lows within a short span of time. NIFTY witnessed a negative opening of almost 35 Points. Bears, however, took a slight breather, helping benchmarks trim losses in mid-morning trade. The pullback, nevertheless, was short-lived as bourses across Europe started with a deep cut and pushed markets lower.

NIFTY marked an intraday low of 4837.95. NIFTY was diving lower and lower breaching important support levels of 4880 and 4850 rapidly, fearing traders too. A fresh recovery in IT counter in the last trading hour, surprisingly, provided the much-needed boost for market to gush higher, but not strong enough to break the negative lid. NIFTY marked an intraday high of 4915.90. REALTY & INFRA was the sector which drag down the markets. For the day NIFTY ended at 4905.80.

Net Selling of Rs. 871.62 Crore in Cash and of Rs. 37.73 Crore in F&O Segment by FIIs was witnessed on Friday’s Trading Session.

Technically, a Negative Crossover between 200-Days SMA (Simple Moving Average) and 50-Days SMA is still intact. Both the 50-Days SMA and 20-Days EMA have given a Positive Crossover, as the short term moving average has crossed the longer term average. NIFTY is once again trading much below its 20-Days EMA, 50-Days SMA and 200-Days SMA. A Fibonnaci Retracement Level is being drawn from the High of 6338.50 (08th November, 2010) to the 18-Months Low marked 4720.00 by NIFTY (26th August, 2011). Yesterday, NIFTY has again slipped below the level of 61.80% level of 5101.97 on closing basis.

As mentioned earlier, that the breaching of 61.80% of the Fibonnaci Retracement marked from the high of 6338.50 to the low of 4720.00, signals that NIFTY can again witness a dip to the level of 5000/4950, NIFTY successfully achieved the level of 4950 on closing basis. Now there is a high probability that NIFTY may also further dip to the level of 4800/4720. Still the markets all over the Globe are doubtful about the clarity of the European Debt Crisis.

A positive action is being eagerly awaited from PIIGS Countries all around the Globe. Hence, still the traders and investors should wait for fruitful results ahead. However, Traders are suggested to take the advantage of Swing Trading, which will appear many times in between.
Due to panic sell off for a streak of four days, NIFTY may again witness a bounce back which could be aided by short covering to its 20-Days EMA of 5110.79 or 5130 in the coming trading sessions.

On the Economic Front, JAPAN will be coming out with its All Industry Activity Index, Leading Economic Index and Coincident Index for the month of September. Rightmove House Price Index for the month of November will be announced in UK. EUROPEAN MONETARY UNION will be coming out with Current Account for the month of September. Existing Home Sales Change and Existing Home Sales will be announced in US.

Traders are suggested to trade cautiously by following Strict Stop Losses and Booking Fast Profits, whereas, Investors are suggested to stay from the markets right now, as market will give better chances ahead for Bottom Fishing and earning handsome returns thereafter.

NIFTY is once again trading below all its moving averages of 20-Days EMA (Exponential Moving Average), 50-Days SMA (Simple Moving Average) and 200-Days SMA of 5110.79, 5064.87 and 5373.26, respectively. The 14-Days RSI (Relative Strength Index) is heading towards its oversold zone from the overbought zone and 26-Days MACD (Moving Average Convergence and Divergence) has given a negative crossover.

For the day, intraday resistance for NIFTY comes at 5080 / 5120 / 5150 levels. At the same time, 5020 / 4980 / 4950 will act as major intraday support levels.

Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
Equity Research Analyst, Indore