You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 16 May
2013: -
On 15 May
2013, FII bought INR 1646.95 crs and DII sold INR 747.11 crs.
Now a day
lots of unexpected things are happening in global financial market. From the
day easy money hit, it becomes master indicator. New in the series came from
India where RBI governor gave a ray of hopes for the next monetary policy
review. Hence, we got a surprise rally.
A surprise rally gave us a fresh breakout on long term chart as it has
successfully crossed the previous high of 6111-6115. It is almost 700 points
stretch on Nifty from its recent of 5477 and it is still running. It can be
concluded that it is over stretched but the fact it that it got new fuel to run
higher.
There are
few contradictions in India market. Like, VIX also got the breakout as it is
now at 18.13. Does this give a hint that people are buying this rally with
fear? Answer may be yes but on charting basis it is a breakout on higher side
to see a move towards new all-time high. We just need a follow up rally. So,
today’s trading session will be very crucial.
Technical charts
are suggesting that crossover of 6160 will give another higher levels towards
6240 and then may be even 6360. Well, it is very important to note that the
lower side support will be at 6110-6100 levels. If it breaks 6100 today by any
chance then we need to review again. It is not an easy market to trade.
Strategy
for Nifty May future – Yesterday’s high
of 6169 will act as crucial threshold point for today’s session. Cross above
6169 (for 5 minutes) will drive it higher towards 6250-6260 levels. Strong technical
support will be at 6110-6100 levels. Condition for this rise to continue is
that it has to maintain levels above 6100. Let us see how it is going to shape
up for the day. I still say that nothing is unexpected for Indian market.
S&P
500
– If I take November low which was at 1345 then we have already seen a rally of
more than 23%. Now, this is historical. It has never gained so much in one
rally. It is full 11.20% away from its 200 days moving average. Every day it is
making newer life time high. It has crossed its previous life time high on 10th
April 2013 and it is still continuing. No one knows when it will fall but
whenever it fall it will be brutal one. I am still on wait and watch mode.
Regards,
Praveen
Kumar
