On Daily Charts, FORTIS has made a Long White Candlestick Pattern, with an excellent spurt in Volume. The Stock is trading much below its 200-Days SMA (Simple Moving Average) of 137.48. It has moved above its 50-Days SMA and 20-Days EMA (Exponential Moving Average) of 100.21 and 99.10, respectively on the closing basis.

It has also crossed the Longer Term Trendline successfully marked from the month of June, which was acting as a resistance till now. The stock is already in a Bull Trend, but now it has crossed its small resistance zone. It made a high of 106.80 for the day and closed at 105.70. The 14-Days RSI (Relative Strength Index) is quoting at 64.24 on the Charts (RSI above 50 indicates strength or confirms the Buying signal).

The Positive Directional Index (28.52) is trading above the Negative Directional Index (19.75). ADX (Average Directional Index) is quoting at 20.35 on the Daily Charts. ADX’s value above 20 indicates that the trend of the stock is strengthening.

Hence, it is recommended to buy FORTIS only if it trades above 106 for the Targets of 110 & 112, with the strict Stop Loss of 104.

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

On Daily Charts, BIOCON has made a Long Black Candlestick Pattern, with a considerable good spurt in Volume. Stock is trading much below its 200-Days SMA (Simple Moving Average) and 50-Days SMA of 338.15 and 299.41, respectively.

It moved below its 20-Days EMA (Exponential Moving Average) of 276.65 on the closing basis. It made a low of 262.60 for the day and closed at 264.25. A good downside movement in the stock can be witnessed above the levels of 361.00. The 14-Days RSI (Relative Strength Index) is quoting at 37.65 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal).

The Negative Directional Index (29.44) is trading above the Positive Directional Index (17.20). ADX (Average Directional Index) is quoting at 30.25 on the Daily Charts. ADX’s value above 20 indicates that the trend of the stock is strengthening.

Hence, it is recommended to sell BIOCON only if it trades below 261 for the Targets of 255 & 250, with the strict Stop Loss of 264.20.

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

On Daily Charts, JETAIRWAYS has made a White Opening Marubozu Candlestick Pattern, showing that it was a typical bull day and strength of the bulls was enough to cause some concern among the bears. The stock rose with an excellent spurt in Volume, backed by the news that the aviation sector may see foreign direct investment (FDI) being allowed.

Stock is trading much below its 200-Days SMA (Simple Moving Average) and 50-Days SMA of 352.03 and 223.72 respectively. It moved above its 20-Days EMA (Exponential Moving Average) of 190.94 on the closing basis yesterday only. It made a high of 209.50 for the day and closed at 203.75.

The 14-Days RSI (Relative Strength Index) is quoting at 54.92 on the Charts (RSI above 50 indicates strength or confirms the Buying signal). The Positive Directional Index (28.10) is trading above the Negative Directional Index (22.63). ADX (Average Directional Index) is quoting at 34.09 on the Daily Charts. ADX’s value above 20 indicates that the trend of the stock is strengthening.

Hence, it is recommended to buy JETAIRWAYS only if it trades above 204 for the Targets of 210 & 215, with the strict Stop Loss of 201.

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

On the Daily Charts, EXIDEIND has made a Long White Candlestick Pattern, with a considerable good spurt in Volume. It engulfed last two days’ candles in it completely. The Stock is trading much below all its Moving Averages. Its 200-Days SMA (Simple Moving Average), 50-Days SMA and 20-Days EMA (Exponential Moving Average) are quoting at 140.97, 116.84 and 110.75, respectively.

The stock may soon touch its 20-Days EMA and will be bullish for forthcoming trading sessions if it crosses it on Closing Basis. It made a high of 109.40 for the day and closed at 107.45. The 14-Days RSI (Relative Strength Index) is quoting at 41.85 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal), reverting from its Oversold zone.

The Positive Directional Index (19.27) is still trading below the Negative Directional Index (26.62). ADX (Average Directional Index) is quoting at 20.34 on the Daily Charts. ADX’s value above 20 indicates that the trend of the stock is strengthening.

Hence, it is recommended to buy EXIDEIND only if it trades above 108 for the Targets of 111 & 112, with the strict Stop Loss of 106.50.

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

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 White Doji Candlestick Pattern.   It was a trading session full of uncertainty NIFTY registered a negative opening of almost 15-20 points negativity. After witnessing a range bound movement till the morning session, it marked a low of 5002.55 for the day and immediately reverted from that level.

Following a strong opening on the European markets, NIFTY entered the positive terrain and registered the intraday high of 5055.40. Nevertheless, the recovery lasted for few minutes, as lack of buying interest pulled down the market back in red. Thereafter, NIFTY traded range-bound for rest of the day and ended on a negative note. Not much of Sector Specific action was witnessed too for the day. For the day NIFTY ended at 5039.15.

Net Buying of Rs. 146.73 Crore in Cash while Net Selling of Rs. 735.45 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. 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). Right now the level of 61.80% (5039.54) of Retracement marked is acting as a resistance for NIFTY on the closing basis. If it crosses it 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 Trade Balance – BOP Basis, Current Account and Core Machinery Orders for the month of October, Coincident Index and Leading Economic Index for the month of November. Manufacturing Production and Industrial Production for the month of October and BRC Shop Price Index for the month of November will be announced in UK. GERMANY will be announcing its Industrial Production for the month of October. MBA Mortgage Applications and Consumer Credit 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 4952.87 and 5017.75, respectively on the closing basis, but is still trading below its 200-Days SMA of 5343.21. 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, 4980 / 4950 / 4920 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

On the Daily Charts, HEXAWARE has made a Long Black Candlestick Pattern, with a considerable good spurt in Volume. It was a day for bears and such a bearish rally should cause concern among the bulls. Yesterday, the stock moved below its 20-Days EMA (Exponential Moving Average) and 50-Days SMA (Simple Moving Average) of 85.13 and 84.27, respectively.

The stock is trading above its 200-Days SMA of 72.52. The stock has breached the long term lower trendline marked from the month of August. A breach of this trendline with volume will invite more selling pressure and the stock can dip to the levels of its 200-Days SMA.

The stock made a low of 82.15 for the day and closed at 82.95. The 14-Days RSI (Relative Strength Index) is quoting at 45.78 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Negative Directional Index (18.75) is trading above the Positive Directional Index (15.05). ADX (Average Directional Index) is quoting at 16.01 on the Daily Charts. ADX’s value below 20 indicates that the stock is in the trading range.

Hence, it is recommended to sell HEXAWARE only if it trades below 82.70 for the Targets of 81 & 80.50, with the strict Stop Loss of 83.80.

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