You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 14
June 2013: -
On 13 June
2013, FII sold INR 558.06 crs and DII bought INR 713.77 crs.
So far
June month is knows for FII’s money outflow. They sold INR 2644 crs so far.
More importantly, they sold for four trading sessions in a row. This is
definitely a disturbing pattern but mostly FII prefer to sell at lows. I have
already warned for this situation when I got first sell figure in the zone of
5950. When they are not earning much from Indian market then it was bound to
happen at some point.
US market
reverses last night with good respect for 50 days moving average. When we close
Dow future was down by 55 points but it manages to close with a gain of 180
points. This may give us a higher opening.
Indian rupee came little stronger at 57.913 after an extremely volatile
day. It is floating on its own note right now and it seems that government will
take few strong steps very soon. I can say that it is speculator’s stability.
I had already said earlier also that one should not short at 5700 without
any technical recovery. One should watch RSI before shorting. Technical charts
are suggesting that we have bottom for this fall as of now. 200 days moving
average is at 5798 levels which are still 100 points away from current levels. First
challenge for Nifty is to cross 200 DMA. Technical support is at 5680 and then
at 5640. On higher side, crossover of 5750 will give some rapid rise based on
short covering.
I said for shorting on metal stocks earlier. Look at the price of all
metal stocks.
Strategy
for Nifty June future – Right now SGX
Nifty is higher by 40 points and it is at 5735. We may have even better opening
with crossover of 5750. If it manages to stand above 5750 then we can expect
rapid rise towards 5808 levels. Expect trading support at 5710-5700 after
higher opening. Today should be a “White Friday”. Will the selling come at
higher levels? It is very difficult to say but it is looking like this kind of
selling will not come today.
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
saved 50 DMA again and a bounce. It was a strong and tempting bounce. As I said
earlier, crossover of 1633 should generate a target of 1653 on higher side. If today’s
first hour will be green then expect the test of 1653 and then another wave of
rise before a final fall. I was expecting a rise from 50 DMA but not a newer
high. Weakness below 1624 will give you frequent test of 50 DMA before final
break.
Regards,
Praveen
Kumar
