You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 11
April 2013: -
On 10 April
2013, FII bought INR 40.22 crs and DII bought INR 197.29 crs.
We got a
bounce in last 100 minutes of trading yesterday. Indian market tries to come in
parallel with global recovery but we are still under performing in a good way. European
market gained over 2-3 % yesterday while US market moved towards another life
time high. For Indian market I will not say that one day of rise is enough to
bet for bottom. Equally, it is better to avoid shorting lower levels.
I can say
that our market will not be as strong as global market. We will get our first
big earning figure tomorrow as Infosys will present its figures. Market will
wait for newer set of IIP and WPI numbers.
Technical charts
are saying that as long it sustain above 5548, we can hope for 5600-5610. There
is great point to expect more rise above 5610. I can expect weakness only if it
breaks 5548 levels. There is a strong logic that I like to watch this time. We have
recovered well yesterday and now it is all set to open with gap up. If this gap
up does not fill then it will be bull’s gap up. On that basis we will have few
critical levels, which I will discuss in next paragraph.
We have
seen massive short covering from low which was justified by FIIs numbers too.
Now IndiaVIX is down only by 2% and it is now at 16.49. So, now one has to be
cautious at higher levels. Indian market has history of shocking market men at
higher levels. Charts are saying that we may see a move above 200 DMA if it
manages to sustain above 5610.
Strategy
for Nifty April future – I was expecting
5450 but it bounced from 5480. It was wild run in last 100 minutes yesterday.
SGX Nifty is showing that we may see higher opening. After a gap up, we will
have two important levels to watch. One is at 5577 and next is at 5553. These
two should be trading supports. On higher side, we can expect levels 5626 to
5630 levels. This is going to be a tough trading session to handle volatility. It
is better to deal only in second half. I am definitely not expecting a cross
above 5650. As long as we are below 5650, we will again hit lower.
S&P
500
– Will USA market ever correct? I will say ‘Ben Guarantee’ is above all market dynamics
and technical indicators. US market is turning to a gravity free space. We can
only hope for something to come but no one knows what could be that ‘next big’
thing. So far, everything looks good for rise for USA. Above all time high, theoretically
there cannot be any resistance. I have no great levels to talk about. US market
is at all-time high, Japan is at 5 year’s high.
Regards,
Praveen
Kumar
