You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 05
June 2013: -
On 04 June
2013, FII bought INR 84.79 crs and DII sold INR 216.45 crs.
It is
clearly visible that FIIs are staying away from buying. If you look at past few
years of money flow then you can observe that this is the first time that FIIs
are not buying the range of 5900-6000 levels. I have repeated many times that
FIIs may not remain bullish on underperforming market.
I have already said for a bounce for relief. It came and turn dead
exactly at 5980 resistance levels. It is very crucial that Nifty has closed
below 5930 levels. Now next levels to watch for support will be at 5860 levels.
Technical charts are suggesting for support to emerge between 5930 to 5900
levels. On daily chart, it is a development of H&S pattern with n-line at
5930-5900 levels. The length of n-line to head is almost 300 points i.e. from
6230 to 5930. Rough idea suggest that break of this n-line will lead Nifty
towards 5930 – 300 which equals to 5630 levels. Is it coming? I will look for
technical confirmation below 5860.
We need to remember those global stock market rallies were backed
strongly by monetary easing. Now, world is feeling that monetary easing may be
in last phase.
Strategy
for Nifty June future – I have said for
support at 5925 and somehow it is looking for opening below those levels. SGX
Nifty is down by 25 points at 5910. Failure above 6000 marks is concerning. It is
looking like to hit 5860 levels. On higher side 5970 and 6000 will act as stiff
resistance. H&S pattern may make this market scarier in coming days.
S&P
500
– I have said for a bounce to extend which was coming after hitting 1622. We
got intraday high at 1646 and then a fall. Technical charts are suggesting that
we should prepare for the test of 1600 marks by this week only. If things go
worse then we can expect 1575 too in coming week. I am already saying that US
market is now getting follow up of selling. There are fear about bond buying
program.
I repeat
that that 80% chances are that S&P 500 has made a top for the year 2013
Regards,
Praveen
Kumar
