You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 05
March 2013: -
On 04
March 2013, FII sold INR 30.10 crs and DII bought INR 111.08 crs.
Indian market
continues with fall and US market continues with rise. It seems that only
Indian market is on fall while rest of the world market is still on rise. If I take yesterday’s low of 5663.60 then it
was full 448.20 points from its 52 weeks high.
I believe
that Indian market should try to see pause now. I am still not very sure about
the recovery for any big targets. We may see some recovery only because global
market is still rising. Fall will resume its momentum again from higher levels
in coming days.
Technical
charts are showing that Nifty will have stiff resistance at 5740 and then at
5780. You can assume that 5670-5660 will act as strong support if downside
comes. First indication is coming from RSI which may able to deliver some
moderate buy signal.
On other
hand I like to draw your attention towards VIX. It has closed at 13.67 while on
26 February it has a high at 17.60. It has a remarkable low on 9th
January which was at 12.57. Remember, lower VIX is giving you the top
formation. Now, you can expect some consolidation which should bring VIX near
towards 12.57 and then it will result another round of sell off.
Today’s
trading will not be impressive after opening. You can expect just last 60
minutes of movement. There is no science behind it just a fact from recent past
whenever market traded in choppy mode.
Strategy
for Nifty March future – I have no great
take from technical chart. It is still down but now it is demanding some
recovery. It has closed at 5720 yesterday. You can levels of 5740 and then 5758
on higher side. If opening gap up comes then there will be nothing to deal. Final
and remarkable resistance is expected only near 5800 marks. I am expecting a
dull day but there is a warning. We may see late sell off from higher levels in
last hour.
S&P
500
– This chart turned out to be nightmare for bears. It is now inviting bear
based rally which is running from 1485. Note that we have two top at 1531 and
three top at 1526. Upcoming 5 points will be decisive. I fail to understand
this development. Patience is the key now. I heard that legendary investor Mr.
Buffet is still buying stocks. He scolds CEO for sitting with huge cash. He is
right but it seems he is ignoring the impact of spending cut. Technical charts
are again saying for support at 1510 i.e. 20 EMA.
