You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 11
June 2013: -
On 10 June
2013, FII sold INR 114.00 crs and DII sold INR 69.75 crs.
Nifty hit
a low at 5857.40 but it has not traded even for few seconds below 5860. It was
looking like that it took support at 5860 rather than breaking it. So for today’s
session also, I will look how Nifty is going to react at 5860. Now suppose, if
it starts spending time below 5860 then we can expect slide towards 5800
levels. On higher side we have two critical resistances, one is at 5930 and
other is at 5980. Recent H&S pattern on Nifty daily chart is still hanging
near n-line.
Now, let us see currency market. Indian rupee has touched 58.15 against US
dollar. It has a great threat of hitting 60 by this week only. 57.30 was break
price. It is a big threat and Indian stock price is still showing its
resilience. I have no reason to be optimistic yet on any recovery on Indian
rupee.
Technical charts are still suggesting for support at 5860 in spite of
H&S pattern. From past six 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.
There were some other crucial developments too. Mid cap and small cap
stocks were on crash as those indices lost more than 1.50%. This might be a
hint for a bigger fall towards 5700-5650 levels on Nifty.
Strategy
for Nifty June future – Expect a soft
opening as SGX Nifty is hinting for start near 5890. Yesterday’s low of 5867
will be crucial. If we manage to trade below 5867 even 5 minutes then we can
expect a sharp slide towards 5830-5800 levels. On higher side 5930-5940 will
act as stiff resistance. One need to note that decisive break below n-line
should give fall and so it is turning decisive now.
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 need to
see trades below 1633 to conclude for another round of weakness but it was well
above those levels for last trading session. RSI and MACD are hinting that if
it saves 1633 then a bounce may come. Let us see. One more positive close or
close above 1633 may hint for further rise. So, today’s closing is crucial and remember
it is Tuesday again. Wall street has strong history of strong Tuesday expect
last one.
Regards,
Praveen
Kumar
