Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
The extended rally in Nifty finally saw some meaningful correction with the index dropping 1.82% and barely managed to close above the 5500 mark. After opening in the green and making a new yearly high of 5630, Nifty started to slip lower on profit taking. The final couple of hours saw the index fall on its own weight as it breached the crucial 21 hourly EMA as well as the 50 hourly EMA. The steep upward sloping trend channel and the 10 day EMA at 5465 are the final pivot point for the bulls, which if broken will lead to an accelerated move lower. Yesterday’s trading day has formed a ‘bearish engulfing / key reversal outside bar’indicating the swing high of 5630 becomes a critical level, and unless that is taken out, the bulls are likely to be under pressure. Trading volumes were higher and the market breadth dipped strongly with an A/D ratio of 1:5. Momentum oscillators had warned of such an eventuality with the hourly indicators already rolling over and the daily indicators showing extreme overbought readings. With the derivatives settlement today, expect markets to be volatile displaying two sided movements. As long as the Nifty is able to hold above the 5465 channel/10 DEMA support, the bulls are expected to help the index higher towards 5560/5600 levels.
Barring the IT index (+0.45%), all other sectoral indices ended the day in the red. The prominent loseres of the day were Realty (-6.77%), Metals (-4.29%) and Banking (-3.82%) stocks. Mid-cap and Small-cap dropped sharply lower by -3.46% and -3.24% respectively.
Bullish Setups: ONGC, BHEL, INFY, PWGR
No comments:
Post a Comment