You must read previous articles and
watch the given chart carefully to understand this article completely.
Today’s outlook: -
It was dull and it was giving signs
of tiredness in the last trading session. Well, it has happened many times in
past that market had given freak sign of tiredness. I can feel that we cannot
be in hurry to conclude that it is tiring. One can take it in another way that
market is consolidating. I have already said that we need a cross over of 6020
to 6024 marks to bet for further rise. It hit a high at 6017 yesterday and then
just trading in a choppy ways.
Rise may be limited from this point
but rise may come. We need to note that intraday trading band was very limited
from past few trading days. We moved higher but majority of rise was dominated
by gap up. Worse is that Nifty future kept on loosing premium?
Technical indicators are still
suggesting that some steam might be in the market. I can sense one thing very
clearly that does even if correction comes it will not a major one. As of now
5980 will act as good support for intraday trading.
Now market need to focus on the up
coming quarterly numbers too which is not considered seriously yet. Another important
event is speculation over bank rate cut by RBI. I heard so many things and
there are so many such talks. In my view, let RBI decide when they what they
want. It does not matter what I think, fact is that banking stocks are still
stronger on hopes and traders need to take advantage.
We need to note that momentum
indicators like RSI is not yet in over bought zone. Even if correction comes
then also it may not break the support of 5940. Can we have a chance to trade
short on intraday? This can be possible but Nifty must not cross above 6024 by
any chance. This is something we can judge only during trading hours.
Conclusion Nifty: I do not think that we need to
make any changes in technical conclusion for the day. Trend is still up with
some target near 6020 then 6024 will act as next threshold for move towards
6100 marks. Important trading support will be at 5980 levels while short term
(say 2-3 days) support will be at 5940 levels. No technical indicators are
concerning either on daily chart or on weekly charts. We can see some intraday
development on hourly charts at higher levels.
S&P 500 – It is above 1460 and it is still
bullish to bet for an attempt to break 1470-1475 levels on higher side. I must
say that it cannot be easy for S&P to cross 1475 but it has potential to do
that (which I am speculating). Cross over of 1475 will give the levels above
1500. Things are looking s easy, isn’t it? Our selected trader took long in dip
and booked good profit. Now I want a pullback or time consolidation.
Regards,
Praveen Kumar
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