You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 23 May
2013: -
On 22 May
2013, FII bought INR 540.19 crs and DII sold INR 973.15 crs.
It was another
post 2 pm sell off and Nifty closed lower below 6100 marks. I cannot say that
it was unexpected. For some reasons, Indian market is under performing its
global market. Indian rupee too has shown further weakness.
Well, we have seen chaos last night in US market. Firstly, Ben Barnanke
has said something but fed minutes was completely different. I can still say
that even US market should be watched for follow up selling. It will be too
early to estimate bulls.
Technical
charts are suggesting that break below 6100 will push Nifty lower towards 6050
and further break will cause a test towards 6000 marks. So far, RSI has already
given negative divergence and a sell on daily chart. Now, MACD is almost giving
sell on daily chart.
We have
four crucial results today – SBIN, Tata Steel, BHEL and JSWSTEEL. It will be
jumbo day for result and very important as LT has disappointed yesterday.
SGX Nifty
is right now at 6098, down by 13 points. I am expecting another weak opening
and Nifty will see selling intensifying in second half. Reactions are expected
on quarterly numbers depending on figures. Keep an eye on SBIN’s NPA number.
Strategy
for Nifty May future – It hit a low at
6081 yesterday. It will be important to note that break below 6077 will give
another strong sell signal for a move towards 6040 levels. On higher side 6125
will act s stiff resistance. I am already expecting for a move towards 6000
marks before expiry. One more negative close on US market can put a lot of dent
on sentiment in India.
S&P
500
– It hit another high at 1687 but it was a different day. S&P slipped from
higher point with dancing views of Ben Barnanke. It finally closed at 1655 with
some trade below crucial 1650 too. If we get a follow up today below 1650 then
it will be a confirmation of reversal.
One must note
that the rise from 1536 to 1673, there is no correction and there is a gap up
from 1599 to 1610. Another thing that you need to note is that S&P 500 and
its 200 DMA has biggest difference so far in the history. 200 DMA is at 1481
and S&P @ 1655.
Regards,
Praveen
Kumar
