You must read previous articles and
watch above chart carefully to understand this article completely.
Today’s outlook: -
It is very tough to deal in the
market which has parliament related hopes. In past few weeks we have seen
better performance by Indian indices compared to global indices. It was the
hope of reforms steps that makes investors to go on bullish mode. Most of the
investors prefer to hold his positions. All these development pushed us for
range bound trading.
Parliament adjourned yesterday and
market turned cautious and limits its gain. There is nothing which can suggest
me that parliament can work today. It is a best technical platform for further
rise but political deadlock is prime concern. I am expecting at least a flat
opening. Here is a point to be cautious – most of the swing has length of 100
points from low. If you look at recent low and yesterday’s rise then we have
almost moved by 94 points. This is giving a hint that 5650 will not easy to
take out. So, are we going to get fall from higher levels? I cannot deny the
situation but equally it is looking tougher to break even 5600 levels.
This is throwing just one
possibility for me – prepare for a dull – range bound session. I need to add
that technical charts and indicators are saying for rise only. Current rise may
sustain for up coming few more days.
If government can act on even 50% of
its planned bill then also market will try to move higher only. Today is
Friday, we may expect tradition second half (specially post 2 pm ) reversal. I have already said for
yesterday that market might be nervous near 11 am and it was. Even for today timing
for 11 am might bring nervousness.
In the above chart you can watch the
pattern of moving averages. This kind of moving averages just require cross
over to bet for further gain. Take a note that 50 days moving average is at
5645 which was almost tested yesterday.
Technical support will be at 5600
> 5583 and then only at 5548.
Conclusion for Nifty – One can
expect support at 5600 for trading. On higher side I am expecting a test of
5650 at least. Well, right now I am scared about winter session of parliament.
If bad news has to come then it will come from New Delhi. Technical charts are
still suggesting for recovery to run. One must watch banking and technology
stocks for trading.
S&P 500 – I am saying for
recovery from 1345 and till now we got almost 3% from those levels. Expect
recovery to continue at least till 1400-1405. Study remains same as of
yesterday.
Regards,
Praveen Kumar
