NSE India: S&P Nifty — Daily Market Report for: Friday (February 17, 2012)
(Based on the activity of the previous trading day) by Dominic Rebello
Review of the Previous day:
The Nifty fell marginally on Thursday (February 16, 2012) a net 10.00 points (0.18%) and closed at the 5521 point level. The market opened down with a gap at the 5513 points level. It then declined further and registered the day’s low at the 5483 points level 11.37 a.m. It then rose and turned into a range bound movement until 2.00 p.m. The index then rose sharply and registered the day’s high at the 5531 points level at 3.05 p.m. It then declined marginally and then turned into a range bound movement until closing at the day. The index remained below its previous close throughout the session and moved in a range of 48 points. Sentiment was mixed and amongst the 50 Nifty stocks, 27 were gainers, while 23 were losers. Buying was seen in realty, power, capital goods, IT, auto, technology and healthcare stocks, while selling was seen in metal, oil & gas, consumer durables and FMCG stocks.
Technical Analysis:
Volume:
Volume (Qty shares) decreased 8.34%. This change is moderate and indicates a moderate participation by investors.
Market Breadth:
Overall Market Breadth on the NSE was positive. Amongst all the traded stocks, 826 were gainers, 623 were losers and 58 remained unchanged.
Slow Stochastic Indicator:
The Slow Stochastic Oscillator has risen in the over-bought zone.
The Slow K line in the Stochastic Oscillator is above the slow D line (positive if it continues).
RSI Indicator:
The RSI is above the 60 level but is now declining (negative if it continues).
MACD Indicator:
The MACD is above zero and is now rising (positive if it continues). It is above its 9-day Average (positive).
ADX Indicator & DI Lines:
The +DI line is above the –DI line but both lines are converging (negative if it continues).
The ADX is rising while the Market Index is flat. No signal here.
Moving Averages (Trend Indicators)
The index:
Is above its 5-day average (at 5448) Positive.
Is above its 15-day average (at 5336) Positive
Is above its 25-day average (at 5197) Positive
Is above its 200-day average (at 5172) Positive.
All the four averages are positively trended. Positive.
Overall Market Strength/Weakness:
The indicators and oscillators discussed here are indicating a strong market but with a neutral bias.
Support Levels:
For short-term traders the immediate main support is at 5040 marked as S1. The next support is at 4900 marked as S2.
Resistance Levels
The immediate main resistance is at 5605 marked as R1.
The next resistance is at 5743 marked as R2.
Pivot Point Analysis:
For intra-day traders the support and resistance levels are calculated according to the pivot point theory and are:
Pivot point = 5512 (This is the level where the trend is likely to change during intra-day).
Support (1) = 5493.
Support (2) = 5465.
Resistance (1) = 5541.
Resistance (2) = 5560.
Outlook for Today:
On Japanese candlestick patterns the index after having formed two consecutive white body candles has formed a doji pattern. This indicates indecisiveness amongst investors. The next candle formation will confirm whether the bias is towards the buy or sell side of the market.
However, the 25 day’s moving average has crossed above the 200 day’s moving average and now all the 4 averages are positively trended. Further, the index is above the 5, 15, 25 and 200 day’s moving averages, while the 5, 15 and 25 day’s moving averages are rising. The velocity parameters continue to indicate strength. All these indicate a positive bias and the possibility of an up move unfolding. Investors are advised to hold long positions.