You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 15 May
2013: -
On 14 May
2013, FII bought INR 420.99 crs and DII sold INR 412.66 crs.
Nifty has
saved technical support of 5970 as a dot. It has not closed on encouraged note.
Well, what has happened last night was more remarkable. USA and Europe market
has seen further massive rise. Backed by those, Japanese market is above 15000
marks right now and this is first time after January 2008.
When will this euphoria stop in USA? Well, no one can say that and it is
looking like those will never fall now. It is useless to focus on any reasons. As
long as fed is backing equity price, it is looking hard to expect fall. Even investors
satisfaction looks like to convert in to greed.
For Nifty,
it is very important that it sustain below 5970 now. If it starts trading below
5970 then we can expect selling to extend toward 5930 to 5900 levels. In alter
sense, as long as it is saving 5970, we can expect pause. I do not think that
rise in US market is sufficient to give us a push. Indian market is under -
performing on long term chart.
On higher
side, it will have two important trading hurdles, which is at 6040 and 6070
levels.
Almost all
momentum indicators are giving a sell signal. It is still hard to believe how
much we shall believe the technical indicators when global markets are on
massive rally. So far SGX Nifty is at 6034 levels which are not as strong as
global market.
After CPI
and WPI numbers, market is looking for GDP data.
Strategy
for Nifty May future – It has last close
at 6005 but it may see some higher opening near 6030 levels. After higher gap,
we should first see the gap fill if it comes. Yesterday, we have seen massive
volatility in 40 points range. I do not think that it will be easy to deal for
intraday cue to volatility. Avoid trades for first half, and then act based on
high-low of the first half. By any chance, if it breaks 5980 on lower side then
a definite short trade will emerge.
S&P
500
– Does it make sense? Definitely not, at least based on any book of technical. Remember
that 1600 to 1610, it has not trades at all as it was gap up. Even that gap it
has failed to fill. I got a threshold at 1616 to 1620 but it has saved those
marks too. I just like to see when it will give up. Closing at day’s high can
never give any such signal for even small pullback. This market looks too far
away from investor’s satisfaction.
Regards,
Praveen
Kumar
