Daily Technical Report 25th April 2012

S&P CNX NIFTY – Daily Technical Report

 25^th April 2012

Indices Close % Chg. BSE Sensex 17207 0.65 CNX Nifty 5222 0.42 India Vix 19.25 -10.75 Moving Averages CNX NIFTY 20 EMA 5309 Negative 50 SMA 5333 Negative 100 SMA 5121 Positive 200 SMA 5132 Positive Nifty Technical Levels Levels 1 2 3 Resistance 5264 5356 5438 Support 5161 5140 5081 Nifty Pivot Points for Intraday Levels 1 2 3 Resistance 5243 5263 5295 Support 5191 5159 5139 F&O Contracts Traded Nifty 24/4/12 23/4/12 Index Fut. 643439 545708 Stock Fut. 1012629 734508 Index Opt. 3753825 4612346 Stock Opt. 244077 247737 Advances/Declines Advances 566 Declines 681 Unchanged 56 Total 1303 Source:www.nseindia.com

Nifty opened flat yesterday due to divergent opening of Asian markets. Nifty was highly volatile in the early morning sessions, of lately it started gaining momentum due to positive opening of European markets. Though Nifty is range bound, it has set its extremes from 5150-5400 which it finds difficult to cross either side. Technically Speaking            MACD has given a whipsaw on 18th April 2012 as 26 EMA and 12 EMA are placed below 9EMA moving averages which gives negative signals. Money Flow continues to decline which indicates that money is flowing out of the index. Stochastic Indicator continues to be in sell mode as %K is below %D as both the lines are below the center line. RSI continues to be in sell mode which indicates that strength of the Index is weak. ADX clearly indicates that Index is trendless. -DI line is placed above +DI lines are moving sideways. OBV is moving sideways without crossing the previous top thus indicating negative signals. Nifty is quoting below 20/day EMA and 50/day SMA but it is above 100/day SMA & 200/day SMA. 20/day EMA has given a bearish crossover as it has cut 50/day SMA from above which gives negative signals.  Volumes were reasonably good as compared to last two trading sessions. According to Japanese candlestick Nifty on daily charts has made Bullish Harami pattern, which is a Bullish Reversal pattern. A white candle today will give a confirmation. On the weekly charts, Nifty has formed a Bullish Engulfing pattern, which is a Bullish Reversal pattern                           From the above indicators it expected that Nifty has to come down. Since Nifty has negated many candlestick patterns last week, 5400 which plays a decisive level will be difficult for Nifty to cross. On Balance Volume (OBV) which is the lead indicator has not crossed the previous top. However we expect that Nifty will be highly volatile during this week. Today Nifty will open in green.

Stocks to watch out today

Ambuja Cements, Axis Bank, DLF, Dr. Reddy’s Lab, Grasim, HCL Technologies, HDFC Bank, IDFC, Idea, JP Assoc, Jindal steel Power, Kotak Mahindra Bank, L&T, Power Grid, Ranbaxy Labs. Wipro.

RANBAXY LABS Daily chart