You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 08 May
2013: -
On 07 May
2013, FII bought INR 655.21 crs and DII sold INR 729.17 crs.
I said
yesterday that global markets are moving like ‘a problem free’ world. In fact,
global markets are ignoring all bad news and accepting all good news. Firstly,
life time came at USA and then even European indices go at new 52 weeks high. DAX has again achieved its new multi-time
higher levels. Japanese market is moving like there is no stop. After a massive
yesterday, Japanese market is still higher today. Right now it is higher by 1%.
Above are great examples that what liquidity can do. Global markets are
running on monetary easing and easy money. To a big extent, stock price moving
higher on fresh hope on growth recovery. Well, data points are not giving as
better signal as rise in stock price. So far, US economy data remains good and
every data was good.
Nifty has
closed above 6024 levels which are very important now. One can apply any
technical indicator but all are giving ‘big divergence’. We do not have too
many history of such development. I was expecting May month sell off but still
there is no such signs as it is still making higher highs.
It is
definitely looking like we are still far from an expected correction and
honestly, I am wrong on my correction call. Technical charts are suggesting for
6080 and then 6120 on higher side. Right now, I will not conclude where it will
stop. Let the market decide.
Just like
to add, if you look at multiyear charts then you can see a big under performance
compared to global indices. Indian market might try to take cues from Karnataka
election result too.
Strategy
for Nifty May future – It is looking like
to see higher start for today also. I can say that if correction comes in
global market then it will be give big damage to Indian stocks. Big question is
that when will correction comes. Till now there is not even small sign yet. Technical
support for Nifty May month future will be at 6020 and then at 5990 levels.
Only a break below 5985 can give some correction but that is also looking too
far.
S&P
500
– It got another good set of data last night and ride continues. How long can
it extend like this? Weekly chart of many sectorial charts are giving sell but
blue chip indices never reacted with those. Divergences after divergences are
coming but still no response coming from Index. I can say that technical indicators
are turning handicapped. I have no levels for today, let us go for wait and
watch mode.
Regards,
Praveen
Kumar
