You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 07
June 2013: -
On 06 June
2013, FII sold INR 270.47 crs and DII bought INR 298.08 crs.
This is
going to be prime concern in few days. FII has sold in cash market as well as Index
futures too. We got a bounce from 5869 which was nearer to the mentioned support
of 5860. It has got almost 80 points intraday rebound but those cooled down
from higher levels. Eventually, Nifty closed below 5930 levels again.
In between we got strong rebound in US market too. S&P 500 rebounded
from 1598. We need to note that 1600 were a key support. It is likely to be
another one day rebound. European market closed in big red as Super Mario said
to be cautious in market. He said to be cautious and stock market listen him. This
is my strong objection point. Policy makers commenting for stock market and
stock market follow them.
Technical charts are still suggesting for support at 5860 in spite of H&S
pattern. From past four trading sessions Nifty is moving near its n-line only
which is at 5930. It will break lower but it will take its own time.
For today’s trading resistance will be at 5960-5980 levels. In the down
side it will take support at 5860. You can take 5860 as break point for 50-60
points of immediate slide. I am equally repeating that trade above 5930-5933
may give some recovery again just like yesterday.
Strategy
for Nifty June future – SGX Nifty is
trading with a fall of 22 points, now at 5906. It is not affected by recovery
in US market. Technical support will be at 5880-5875 levels which was yesterday’s
low. Fresh shorting can be possible only at the break of 5875-5880. Now that
key support will be only at 5860 on Nifty spot. On higher side 5970 will be
only meaningful resistance. As the difference between resistance and support is
wider so we can expect massive volatility.
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 have
said for the test of 1600 which we got yesterday with a low at 1598. Take a
note that S&P 500 has rebounded from nearer 50 DMA support. I was expecting
a bounce but not this stronger. Well, now technical resistance will be at
1633-1638 levels. It will take time but fall will open for the test of 1575
levels. I will wait for at least one negative close to conclude for time.
Regards,
Praveen
Kumar
