Thursday, May 12, 2011

Intraday Nifty Stock


As mentioned yesterday, Intraday Nifty after declining sharply by more than 500 points in last few days is making a bearish "Flag" pattern with support around 5480-5500. If this support is broken for 2 consecutive days there are chances that we may be heading for 5000 or below in coming weeks. On the other hand, 2 economic events i.e. results of state election & hike in petro products can influence the fundamentals/technicals in either way depending upon its outcome. Next 2 days can be tricks & move can be big in form of bear covering or fresh shorts depending upon the outcome of above 2 events.  

Nifty Stock opened on a flat note despite the fact that most of the US & European markets were positive & Asia was mixed & narrow. Nifty stock remained extremely range bound between 5525 & 5574 making higher bottoms & higher tops without any significant change in the technical setup & managed to close at 5560 about 20 points above the previous close.

As far as, extreme short term charts are concerned, Nifty has been making a bearish "Flag" kind of a pattern in daily charts after it had declined by 500 points in last few weeks having support around 5450-5500. In case this support is violated a further fall of 500 points can be expected in near future. 

On the other hand, if the election results are not bad & hike in petro products is moderate, a pullback rally towards 5635-5685 will be on charts. Technically since the pattern is bearish odds are in favor of bears however surprises in store cannot be ruled out which can change the fundamentals/technicals in no time. It would be better to follow the technical levels only. (From 5T-110511)

As far as bar reversal in Daily charts are concerned, stocks like ICICI, Reliance, HDFC Bank, TCS, Nitin Fire, IOC, Kotak Bank, BGR Energy, Camlin, Union Bank have given "Upward Bar Reversal" while Axis Bank, Sobha Developer, Everonn, BF Utilities, BOB, Mundra Port, Cipla, PNB, Subex Azure etc. have given "Downward Bar Reversal". 

Stocks like Jindal Cotex, Mastek, Advanta, Digjam, Oracle Financial, United Breweries, 3I Infotech, Shasun Chem, Delta Corp., Rennaisance have shown  spurt during the day with unusually high volumes.

Sector wise, most of the stocks like Mastek, Purvakarna, 3I Infotech, SKS Micro, Delta Corp., Ranbaxy Labs., Jubiliant Food, Max India, Tanla, IGL etc. were among the top gainers of the day,  to close in positive territory whereas stocks like Acropetal, ARSS America, Opto Circuit, GSS America, Jyothi Labs., Nucleus Software, Renuka Sugar, Bharat Electronics etc. attracted profit booking at higher levels & closed in red territory. As far as, A/D data is concerned it was in favor of bulls in the ratio of 4:3 with 818 advances & 585 declines during the day.

In nutshell, Intraday nifty stock after declining sharply by more than 500 points in last few days is making a bearish "Flag" pattern with support around 5450-5500. If this support is broken for 2 consecutive days there are chances that we may be heading for 5000 or below in coming weeks. 

On the other hand, 2 economic events i.e. results of state election & hike in petro products can influence the fundamentals/technicals in either way depending upon its outcome. Next 2 days can be tricky & move can be big in form of bear covering or fresh shorts depending upon the outcome of above 2 events.  The best strategy is to remain light & very stock & sector specific till the position is not clear in next couple of days.(From 5T-110511)

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