You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 31 May
2013: -
On 30 May
2013, FII bought INR 787.47 crs and DII sold INR 315.86 crs.
It was one
of the wildest derivative months which closed on strong note. We saw new
multi-year high and then a quick retrenchment towards 5930. Now we are again
200 points higher from those levels in the matter of just few trading sessions.
For Indian market liquidity is still flowing in its own pace.
M&M has presented a strong set of numbers which DLF disappointed. We have
already seen rewarding rise on M&M. Now for today, market will wait for its
GDP data which is scheduled to come today. An expectation for GDP is for a
range of 4.80% to 5.00%.
Technical charts are suggesting that Nifty has formed a base at 6050
levels and technical support will emerge at 6080 also. On higher side, it is manage
to spend time above 6130 levels with volume then we can expect another 50-70
points of rise.
Alter sense suggests that if it breaks 6080 in the down side then it can
move near to 6050 too. Any break below 6050 will be decisive. We need to assume
that volatility will remain in this market. Nifty may fluctuate big before and
after GDP data. Global markets are firm to strong right now.
Strategy
for Nifty June future – SGX Nifty June
future is at 6142 right now. It is indicating for 10-15 points’ higher start. Immediate
technical resistance will be at 6150. Volume cross of 6150 will add 30-40-50
points more on higher side. Exact reachable levels can be 6186-6190. As long as
it is staying above 6080, we cannot expect immediate weakness. It may swing in
both directions depending on the outcome of GDP data.
S&P
500
– Now, from past three trading days, US indices are closing well of its
intraday high. This is a pattern changing but not yet giving good sign of any
profit taking. I am still considering that as long as S&P 500 is above 1633
we have no room to think for correction. Stiff technical resistance will be at
1675 and 1688. If it goes below 1633 then we can hope for 1600-1575 as first
meaningful correction of 2013.
Regards,
Praveen
Kumar
