You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 06
June 2013: -
On 05 June
2013, FII bought INR 88.49 crs and DII sold INR 99.75 crs.
Money flow
is turning sluggish and this is true for the world. We need to note that it was
easy money which is a driving force for rise. Now, people at USA are scared
about rollback of quantitative easing. Fear was visible in US market last
night. Dow Jones has closed below 15000 marks. Remember that every single
global index got its top in the month of May and now the fall is extending. Indian
indices remain laggard.
I cannot change study too much compared to yesterday as Nifty is still
below 5930. It is clear that we are going to see gap down opening. Technical charts
are suggesting that break below 5880 will cause the test of 5800 levels. The way
market is moving, we can conclude that time has come for H&S pattern to
act. H&S pattern is giving technical target in the range of 5700 to 5650.
We got pullback yesterday from lower levels. This pull back was driven by
Reliance and some other heavy weight. All eyes are on Reliance AGM where market
men are expecting Reliance’s plan for telecom services and details about D 55
gas block. In my view, people are expecting too much from Reliance. It has
triple bottom at 780. Break below 780 will cause massive fall.
This market will be about stock specific selection. Out performing stocks
are not falling and shorting those may not be good idea.
Strategy
for Nifty June future – Right now SGX
Nifty is down by 50 points and giving a hint for the break of threshold 5895. Charts
are suggesting for panic if it breaks 5895 levels. It should be a break of 5-10
minutes to bet for fall. Next technical target will be at 5860 and then 5800
levels on desired break. If it saved 5895 then it may again see a pullback from
lower levels.
S&P
500
– I am keeping this line as it is. “I repeat that that 80% chances are that
S&P 500 has made a top for the year 2013”. I was expecting a test towards
1600 marks for this week. Yesterday we got a low at 1606.70. It is down by
almost 5% from its recent peak of 1688. It may not get a pause right now and
fall should extend towards 1575. Will it consolidate again before? May be yes
but final outcome will be a move towards 1575 on the break of 1600.
Regards,
Praveen
Kumar
