You must read previous articles and
watch above chart carefully to understand this article completely.
Today’s outlook: -
I had mentioned the support to 5638
to 5630 few days back. It was also quoted that break below 5630 will take the
nifty down towards 5500. Well, Nifty has bounced from 5636 and rebounded
strongly backed by massive short covering and buying in banking stocks. It was
another set of reforms which has helped the sentiments. Question is that is it
really changing anything?
I still feel that charting is
suggesting that we need to wait for the cross of 5730-5732 resistance zones to
bet for any further strength. A pullback from 5736.95 came and there are
chances that it will end near 5730. Suppose if it manage to sustain above 5730
then we can expect levels of 5780 to 5815 levels.
Opening is expected be influenced
with Infosys quarterly numbers. One must note that the support of 5638 to 5630
will be a valid support for today’s session. There might be the week end factor
also. Do take a note that we have Reliance numbers to come on Monday market
hours.
I have discussed about S&P 500
few days back. I said that failure of the cross of 1475 will result the yearly
top. There is a technical support at 1424 to 1418 levels. Now it is at 1432
levels. So upcoming few trading sessions will be very important US
I have already raised enough
question market on QE 3. Now, it seems that market is also sensing that it is
actually not going to fulfill the purpose. I can conclude that US people are busier
with US
European market is also not very
comfortable after ‘unlimited bond buying’ program. I have just one view that policy
makers have bought some time to face the problem. Time is coming closer and we
may expect sharp reaction in coming days. It is equally true that we have not
got any kind of technical alarm yet.
So, for us, watch out for quarterly
numbers of Infosys and HDFC bank. There will be another set of IIP data coming
today, which might be negative again.
Regards,
Praveen Kumar
