You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 09 May
2013: -
On 08 May
2013, FII bought INR 976.99 crs and DII sold INR 669.08 crs.
It does
not matter how but the fact is that rise continues for Indian market as well as
global market. Indian market moved higher very sharply in last 15 minutes of
trades. Somehow, most part of the world see rise in last part of the session.
I can say that ‘price correction’ is an integral part of market dynamics
but current rise is stretching too much without correction. If market starts
moving in this way then it should be termed as ‘euphoric’ market which always
takes only positive cues. It seems that rise will continue with ‘negative
divergence’ in hourly charts. Yesterday, CNX NIFTY JUNIOR and NIFTY MID CAP 50 have
closed lower which Nifty was going higher. This is showing a broader under
performance.
Broader under
performance is starting but this factor can also take time. On other hand, parliament
adjourned before schedule and left all crucial bills away from table. Even that
was not enough to tamper the sentiment. This market is ignoring all bad news
and only accepting good news right now.
I was
expecting May month sell off but there is no such beginning now. I can say that
bigger under performance of Indian market will continue on long term chart but
it will not be completely isolated from global market.
Strategy
for Nifty May future – It has a technical
support at 6024-6020 levels. Yesterday also, it has tested only 6025 and then
bounced. It is not going to make speculative top or resistance. On 29th
January 2013, it has formed a top at 6120 which should be under test now. There
are no signs of pause and rise may continue for more. Rise should continue as
long as it is forming higher lows and higher high.
S&P
500
– I was expecting resistance, correction and topping formations. Well, it goes
in reverse way and just moving higher day by day. Over bought rise is most
dangerous rise. I can spot support which is now at 1620-1616 levels. At a new
life time high, resistance cannot be defined. I know that it will end bad but I
do not know when will that end come. Bulls may continue to dominate.
Regards,
Praveen
Kumar
