You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 17 May
2013: -
On 16 May
2013, FII bought INR 1070.32 crs and DII sold INR 390.42 crs.
It was a
choppy trading session after a breakout on Nifty at 6120. Well, we have seen
700 points of run up on Nifty and it was looking to face resistances on rise
but it has broken every single resistance. Next such crucial resistance is at
6200 marks. Derivative build up is giving a hint that if it manages to cross
6200 marks then we can expect a move towards 6240-6260 levels on short covering
rise.
This market may not give easy sign of give up as long as it is staying
above 6110-6100 levels. Now suppose if it fail to cross above 6200 marks then
it will turn dull like yesterday. So far, this market is looking to be buying
on dip market.
Although
SGX NIFTY is giving signals for slightly higher start but global cues are not
as strong like past few days. Government is planning to speed up its
disinvestment program. Perhaps, SGX NIFTY is reflecting those impacts.
Market is
likely to give its reaction on ITC result impact which is expected to be coming
today. Will it surprise like HUL? SBIN chairman said that he is not expecting
rate cut in June month monetary policy review.
Strategy
for Nifty May future – It is moving with
higher high and higher low. So, it is a better idea to add long trade on the
cross of previous day’s high. So, in that way, cross above 6198 will give
another 30-50 points of rise. In the lower side we will get trading support at
6160 levels. Break of 6160 can give a fall towards 6120-6110. Anything below
6110 will be critical and crucial as well.
S&P
500
– There are some talk of roll back of QE in this summer. This is making US
market little nervous. Fed may reduce its bond buying program. It has seen a
fall from 1661. US market futures are showing sluggish sign this morning. One more
dip and then we can be in better position to conclude for some correction. I must
add that charts have no such history of such overbought market in the world. I
am hoping for 1635 now if fall continues.
Regards,
Praveen
Kumar
