You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 24 May
2013: -
On 23 May
2013, FII bought INR 316.23 crs and DII sold INR 538.75 crs.
Japanese
blue chip index Nikkei has slipped over 7% yesterday. It was a characteristic
one day drop which comes after sharp rise. Indian market was also under that
fear although we have not seen as much as rise Japan has seen. Right now,
Japanese market is recovering after yesterday’s shock.
Last night, US market covered almost a very big part of the loss which
was indicating while we were trading. It may be the bulls attempt to save.
Bulls at USA did their best but threat will alive. It has almost slipped by 350
points from its Wednesday’s high and so far, recovered by 50%. I can say that
US market has not got any strong follow up of selling.
We got
some crucial result in past few days where LT and SBIN have disappointed a lot.
On other hand, Tata Steel has given result in line with market expectation. Almost
all blue chip stocks have delivered their number but most has disappointed. We can
say that India’s earning were not as good as developed market. This might be
the reason that our market remains a under performer.
Now a lot
depends on monsoon development.
Technical charts
are suggesting for immediate support at 5950 to 5930 levels. On higher side we
will have resistance at 6024 to 6048 levels. I am expecting a choppy trading
session.
Strategy
for Nifty May future – SGX Nifty is hinting
for start at 5990 levels which is not as better as US market has recovered.
After such opening, technical resistance will be at 6020. Crossover of 6020
will push it towards 6050. In the lower side, break below 5949 will give fresh
wave of panic. Charts are showing that market will head towards lower levels
with some consolidation. Note that 5949 is the 38.20% retracement of rise from 5480
to 6239.
S&P
500
– It has seen a drop from 1687 to 1636 in the matter of 24 hours. Now it has
closed at 1650 which is a dot resistance. I will not say that pain is over. In fact,
it is the beginning of pain. So far, strongest bulls of the world have held
their market in a good way. Let us see for today. Break below 1636 will give us
1600. It should come and market need to find its excuse for that.
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
