You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 03
June 2013: -
On 31 May
2013, FII sold INR 504.02 crs and DII bought INR 203.11 crs.
FII has
net sell figures for two consecutive Fridays. They sold for 24th May
and they sold for 31st May too. It begins the June month series in
the worse possible way. It was nearly 2% dip on Friday and there were many
stocks which went on the lower levels of more than a month. Examples are stocks
like Tata Steel, SAIL etc.
We need to accept that except majority of Indian companies has disappointed
with its quarterly earnings. A trimming GDP figure was also reflecting the same
things. We have seen impact on market after data hours. Market dynamics shows
that we are in post-result sell off mode. It
is not reflecting on index but there are many stocks which has given
post-result selling. Stocks like HUL were expectation.
Technical charts were showing for support at 6050 but it has broken
brutally to slip further 75 points in a shock. We need to note that 6130 has
acted as stiff resistance on higher side which was expected. It came on
derivative expiry day and that’s in final hour of trade.
Now, I am getting next technical support at 5930. If we start getting
close below 5930 constantly then we can expect a dip towards 5700-5600 levels. Well,
for today I will look curiously towards 5930. Take a note that Infosys will see
4-5% rise irrespective of market condition as Mr. N.R. Narayanamurthy came back
in Infosys.
Strategy
for Nifty June future – SGX Nifty June
future is at 5975, down by 14-15 points. Indian market were already sensing
this fall on Friday. One must note that we got more than 2% selling on Friday
so be cautious on lower side. I am not ready to add short at lower levels as I
am already holding shorts from higher levels. Technical resistance will be at
6030-6050 and support at 5945-5930 levels. Infosys may come to rescue index.
S&P
500
– It has finally broken 1633 support marks and closed below this one. Now we
just need to see a follow up buying. It is likely to give one soft bounce
before final fall but it should be noted that S&P 500 closed in red for two
consecutive weeks and that happened first time in past six months. My charts
are suggesting me that almost all global indices hit a top (may be a short to
long term top) in the month of May itself. I was already assuming for May month
sell off. I am can say that 80% chances are that S&P 500 has made a top for
the year 2013.
Regards,
Praveen
Kumar
