You must read previous articles and
watch the given chart carefully to understand this article completely.
Today’s outlook: -
On 24 January
2013 , FII
bought INR 1026.32 crs and DII sold INR 752.26 crs.
Are you still focusing on the figure
that FII are buying? If yes, then feel that pain of fall in stocks like HDIL,
IVRCL INFRA and even HUL and TATAMOTORS. After crossing 6000 marks, we spend 17
trading sessions but we are still at 6000. I have already indicated for “the
topping” formation in this zone.
It is market dynamics that give us
price correction and it was bound to come. I have already said that MACD and
RSI are giving ‘negative divergence’ which cannot be ignored to a bigger time
period. I will still say, save your self from burning mid cap stocks. Promoter’s
game is not over yet and asks SEBI why this happening is in a periodic manner.
It is technical which are giving
indications in advance and it is up to you if you re accepting or you are
rejecting because of temporary failures. I was expecting that first top should
come from US market but it is looking like Indian market might have formed
first top.
If you are a trader then also you
need to give the test of patience. Even shorting in this market may not reward
you in small time frame. First weakness has emerged on metal stocks from higher
levels. if you look at the money flow pattern then you can able to see that HUL
and TATA MOTORS were FII favourite and both got multiple up gradation. Now both
slipped drastically. I am leaving conclusion on you to understand. Who was
right?
Strategy for Nifty January future: I have spotted 6111 for January
month future and it has failed to give us a fall which is almost 100 points
now. Even yesterday it was written for 6010 to 6000. It hit 6010 before moving higher.
We have seen second half fall. For today, keep an eye on 6000 marks. Trade
below 6000 for 5-10 minutes will give 5950. On higher side 6080 will be tougher
resistance too cross.
S&P 500 – 1504, a high on S&P 500 came
yesterday to hit highest levels since September 2007. I kept on saying buy from
1345 and even at 1400. I turn bearish saying that rise till 1500 is possible
but those are shorts only. Remember the fear gauge VIX is at all time low. This
index must see correction. First sing of weakness will come below 1475 which is
now too far.
Regards,
Praveen Kumar
