You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 13
June 2013: -
On 12 June
2013, FII sold INR 1060.17 crs and DII sold INR 717.89 crs.
FII has
sold five out of eight days of June month yet. Worse is that they sold in cash market
for past three days in a row. If you look at recent few months’ money flow then
you may realize that FII were buying heavy at peak and selling heavy near low.
Last night
US market opened higher by 0.60% but closed lower by 1.00%. It slipped again on
the fear of roll over of QE. Now, this market is creating dilemma. One day
expecting ‘rollover’ and next day refusing. Japanese market is down by nearly
6% right now.
All news is not bad for India market with morning. Government of India
may announce NRI bond to strengthen Indian rupee. Fitch has changed India’s outlook
from ‘negative’ to ‘stable’. It has taken out the possibility of down grade.
Technical charts are suggesting that we are nearer for a bounce but
bottom has not defined yet. It is looking to take support at 5710-5702 levels.
Well, any further failure will create panic. Market has entered in over sold
zone and any fall in this zone can be brutal. So, this is first hope and last
hope.
Finance minister is going to address at 10 am today about currency weakness.
Strategy
for Nifty June future – Right now SGX
Nifty is down by 60 points and it is giving quote at 5712. It will not open
that much weaker. Now support if we open near 5710 then we has higher chance
for a bounce. At least, we cannot short at low after this kind of gap down. Break
below 5710 will cause fall towards 5650 levels too. So far, Nifty has slipped
by 500 points from its recent top. How much more is coming?
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”.
It has
broken its mildly bullish pattern and closed on 50 DMA which is at 1608. It is
opening the possibility of re-test of 1598 levels. This is the fall which is
coming in over sold one. This is happening first time in past 6-7 months. There
is a possibility of mild bounce but bounce may left out. Take a note that when
it was rising, it has denied many corrections too.
Regards,
Praveen
Kumar
