You must read previous articles and
watch above chart carefully to understand this article completely.
Today’s outlook: -
Parliament has wasted its third day
and market closed on dull note. There was no outcome of all party meeting which
was conducted to the dead lock in parliament. It is important to note that even
after all negative market has not given up to any significant levels. It is
just trading flat. I am accepting that impossible is nothing but this market is
not trading weak yet.
Second concerning factor is also
domestic. Indian rupee is constantly trading with extreme weakness. Yesterday
it hit 55.80 against USD.
Derivative data is suggesting that
people took ample of short position on the anticipation of fall from 5650. I am
constantly trying to keep my bias bullish. Cross of one resistance will the
preparation to hit next levels. Some supporting news flows are coming from euro
zone. Greece will get next bailout fund.
Technical charts are moving with
higher high and higher low kind of pattern. As long as this pattern sustain we
can hope only for rise. I still prefer to hold my long positions.
Technical indicators also not giving
any signs of panic at the levels of 5630. One can focus on the above chart. RSI
is still hinting that this rise has more steam. On higher side I am expect the
range of 5680 to 5720. It may take few days but it is looking like to come.
Technical support will be at 5600
> 5583 and then only at 5548.
Market may try to advance higher and
try to ignore cues coming from Indian parliament. We can only hope that
government will come out with some positive development. I am sensing that UPA
will try to move forward with discussion under rule 184 and they may get a
favour from DMK and BSP. When Dr. ManMohan Singh has already quoted that if he
has to go then he will go by fighting then there is no point to stay away. He should
come forward and accept the challenges. It was not unexpected move by
opposition.
Conclusion for Nifty – I am already
having long position which I am going to hold. I am making today’s trade a ‘make
or break’. If market fails to break above 5650 then only I need to think. Till now,
things are suggesting me to hold long. I can be on neutral side in the worse
case but I will not short this market.
S&P 500 – I said that a dip is
possible towards 1390 before further rise. We have seen a low at 1397 yesterday
and then an intraday bounce. This was opportunity to buy. It is looking like
S&P 500 will generate further steam. Now traders should prepare for 1445 +
levels and keep your stop loss at 1385. I am repeating again that in the month of
December we may see levels nearer to 1470.
Regards,
Praveen Kumar
