You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 27 May
2013: -
On 24 May
2013, FII Sold INR 238.56 crs and DII sold INR 132.79 crs.
Above sell
figures from FIIs are showing that they might be losing patience. It is a fact
that FIIs are not making money on their India investment. Nifty slipped by
3.30% in the last week of trades. We saw first crack in Japanese market last
week, like bubble bust. Even for today, right now Nikkei has seen a fall over
3%.
I cannot say that American and European markets have given any great sign
of price correction. It is likely to come but it has not come yet. Indian market
has completely a different story, no matter what may be reasons. We have seen an
easy dip of 3.30% dip last week. Now we are entering in derivative expiry week.
We need to note that due to past five weeks of rise, we may not have great
short build up yet. On Friday’s closing hours we got some intraday pullback due
to short covering itself.
I have
already quoted 5930 as a technical support for Friday and it hold well. I am
giving importance to 5930 levels again for today also. If it breaks 5930 then
we will see a sharp fall towards 5860 levels too. Apart from technical, I am
sensing that Indian market will dance on Japanese as well as global mood.
Technical
charts are suggesting for immediate support at 5950 to 5930 levels. On higher
side we will have resistance at 6024 to 6048 levels.
Strategy
for Nifty May future – SGX Nifty is
trading with a weakness of 15 points. It is hinting for soft opening. For Nifty
May month future, important support is at 5930. Expect expiry based volatility
for today and it may continue for next few days. Any rise will get sold at
higher levels. Technical resistance will be at 6012 and then at 6048. It is
going to be another tougher trading today also in term of volatility.
S&P
500
– It 20 days exponential moving average at 1633 which has saved in past two
days and market rebounded from a nearer level. Now, 1633 is a good technical
support. Only break of 1633 will show any further sign of weakness. Will
strongest bull of the world allow S&P 500 to slip below 1633? Let us see
tonight. MACD gave a sell on daily chart. RSI has already given sell few days
back. Weekly charts are saying for, “Wait and watch if it breaks 1633”.
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
