The Nifty ended the trading session on Thursday, 25th February, flat with short covering on the last day of expiry of derivative contracts for February series coming to the rescue despite weak cues from global markets on resurfacing Greece crisis. Expectations from the Budget, to be tabled tomorrow morning by Finance Minister Pranab Mukherjee, also kept the investors on the edge.
Today is the fourth consecutive day when the Nifty traded in a narrow range, even as volumes surged up relatively higher on short covering and rollover of derivatives for the next series.
Nifty opened the trading session flat at 4,859, following previous close at 4858.60, and ended at 4,859.75, a net gain of 1.15 from previous close. During the session, the index touched a high of 4,880.15 and a low of 4,835.60, thus keeping the total range for the day at 44.55 points.
In technical chart analysis, NIFTY formed a Doji, an important pattern that indicates the tug-of-war between the buyers and sellers in the market and the indecision prevailing in the market, ahead of the BUDGET to be presented by Finance Minister Pranab Mukherjee tomorrow morning.
The DOJI assumes additional significance as the market has been trading in a very narrow range for the past four days with no clear victory to either the bulls or the bears. The global markets also are in jittery shape, caught between Fed Chairman Ben Bernanke's testimony and the resurfaced debt crisis in Greece.
The coincidence of the third anniversary on February 27, when, three years ago, the global markets started their meltdown, also assumes significance, as global markets are once again at an inflection point.
A cursory look on the moving averages - very short term- does not paint a rosy picture either, making it all the more tense than never before.
Nifty closed the session at 4,859.75. The 5-day simple moving average is at 4,857.86, and the 10-day simple moving average is 4,857.56, just 0.30 points lower than the shorter time average. At the time of posting this blog at 7.00 p.m. on Thursday, the Dow Futures indicate a lower open in the US ahead of Ben Bernanke's testimony on economy. The indications are not rosy and Indian market braces for a rough ride on Budget Day - February 26, 2010.
Thursday, 25 February 2010
Tuesday, 23 February 2010
Nifty ends with modest gains; Market nervous ahead of budget, settlement
The benchmark Nifty index ended in positive territory for the second successive day of the week on Tuesday with a modest gain of 13.65 points, or 0.40%, at 4875.75 amid volatile trading as investors await the railway budget, economic survey and the main budget during the course of the next three days. The closing of the Derivative contracts for February series on Thursday also impacted market sentiment.
The Nifty opened at 4856.60, declined to as low as 4833.15 amid weak cues from other markets in the region on opening, recovered the early losses,and rose to as high as 4884.10 on positive global cues, but drifted back a little to end the day with a modest gain of 13.65 points, at 4,875.75.
The Nifty opened at 4856.60, declined to as low as 4833.15 amid weak cues from other markets in the region on opening, recovered the early losses,and rose to as high as 4884.10 on positive global cues, but drifted back a little to end the day with a modest gain of 13.65 points, at 4,875.75.
Monday, 22 February 2010
NIFTY - Technical analysis : Monday - 22 February 2010
The benchmark Nifty index ended with a modest gain of 11.50 points, or 0.24%, at 4856.40 on Monday, 22 February 2010, failing to capitalize on the positive sentiment that prevailed across the other markets in the region. Concerns about the outcome of the Union budget, that is due for presentation on Friday, as well as expiry of F&O contracts for February series on Thursday, 25th February, prevailed over the market, dragging the indices from as high as 4912.05 to as low as 4845.90 before closing at 4856.40, during the trading session.
Among the sub-indices, the Bank Nifty managed to end in positive territory with a marginal gain of 0.07% or 6.25 points at 8,493.35, while the CNX Midcap index and the CNX Nifty junior index ended in negative territory. The CNX Midcap index shed 51.8 points, or 0.72%, to end at 7,160.45, while the CNX Nifty Junior Index ended below the 10,000-mark at 9,948.50, posting a loss of 66.25 points, or 0.66%.
TECHNICAL ANALYSIS OF NIFTY:
Nifty fails to hold above the psychological 4,900-mark for the fifth time since the beginning of February. It might be recalled that of the 16 trading sessions since 1st February 2010, Nifty surpassed 4,900 as many as seven times, but ended above 4,900 only twice - once on 3rd February and the other on 17th February.
Among the sub-indices, the Bank Nifty managed to end in positive territory with a marginal gain of 0.07% or 6.25 points at 8,493.35, while the CNX Midcap index and the CNX Nifty junior index ended in negative territory. The CNX Midcap index shed 51.8 points, or 0.72%, to end at 7,160.45, while the CNX Nifty Junior Index ended below the 10,000-mark at 9,948.50, posting a loss of 66.25 points, or 0.66%.
TECHNICAL ANALYSIS OF NIFTY:
Nifty fails to hold above the psychological 4,900-mark for the fifth time since the beginning of February. It might be recalled that of the 16 trading sessions since 1st February 2010, Nifty surpassed 4,900 as many as seven times, but ended above 4,900 only twice - once on 3rd February and the other on 17th February.
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