You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 10
June 2013: -
On 07 June
2013, FII bought INR 157.90 crs and DII bought INR 172.70 crs.
On Friday,
Nifty hit a low at 5871 and manages to close just above those levels. It has
again saved 5860 support levels. Now, it is looking to take a higher gap up
opening due to rise in US market. So, we are again going to see trades near
5930 levels. One need to note that from past five trading sessions, we are just
trading near 5930 levels only. It has added volatility in market due to swing
in both directions. It was expected movement near n-line of H&S pattern. Market
is not ready to give up easy fall.
US market moved higher on Friday night due to data support. It was strong
and meaningful rebound after hitting support at 1600 on S&P 500. It has
almost rebounded by 3%. Something will come out this week too to pull those indices
down.
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.
Another major concern for Indian market is weak Indian rupee. Right now,
1 USD is costing us INR 57.07 which is way too high than a comfort. Now any
break below 57.30 will push it further lower towards 58-59 levels.
Strategy
for Nifty June future – SGX Nifty is 48
points higher but I do not think that it will open that strong. Worse part is
that we are oscillating from 5980 to 5860. We are going to open at mid-point
again. Friday’s high of 5989 is a meaningful resistance. In the down side we
have support in the zone of 5875 to 5860 levels. There is nothing great to
conclude as long we are staying in this range.
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 do not
think that S&P can able to make a new high. We have seen fear easing for
the rollover of QE. We have recent high at 1687 and low at 1598 and S&P has
retraced 50% of the fall. I am not denying the further bounce before fall to
resume. Key threshold in the down side will be at 1633 only. On higher side
resistance will be at 1653 levels.
Regards,
Praveen
Kumar
