You must read previous articles and
watch above chart carefully to understand this article completely.
Today’s outlook: -
Finally another most awaited day has
come. Indian parliament will discuss about FDI in retail (the first reform
process). Voting will take place tomorrow. Till now market is assuming that UPA
government will able to win the voting. We have moved from 5548 to 5899 on
those hopes. I need to mention the political parties SP and BSP are not giving
clear view on this matter and created suspense.
Today will be a decider for the
sustainability of reform process. I am assuming that UPA government should pass
the voting. Market is surely going to be volatile with comments from
politician.
FII flow has reduces some intensity
as they bought only INR 303 crores. Now let us see the technical development. I
have quoted for the resistance at 5912 yesterday, it remains untested. If we
need to be concerned then first indication is coming for VIX. I have mentioned
about the same in my weekly analysis too.
You can have a look on the vix
chart. Rising vix is not good for the rally. I am still assuming that firstly
it is giving an indication of pullback only. I need to be honest that vix chart
is giving be signals for caution. Any cross of 17-18 levels will be a
confirmation.
Conclusion Nifty: Nifty is expected to be very
volatile. We may see some gap small gap down of 15-20 points. Then we will have
technical support in the following way 5850 > 5820 > 5800 > final @
5770. There will be few important resistances, one is at 5900. Assuming for 62%
of wave 1 is giving me resistance at 5905. I am considering that 5900 to 5912
will be a zone of resistance. Dip can be the opportunity to buy.
S&P 500 – Technical analysis is the
toughest job of the world and criticizing technical study is the easiest job of
the world. I never claim that I will be right every time. I gave a
resistance of 1424 yesterday for a correction. Check the yesterday’s high (1423.73).
Try to conclude for those levels like 1424 for once if you want to criticize. You
can open previous articles, we were suggesting for long trade on S&P 500
from the day it was hitting 1345. Similarly, 5550 on Indian market too.
Regards,
Praveen Kumar
