You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 08
July 2013: -
On 05 July
2013, FII sold INR 15.71 crs and DII bought INR 105.27 crs.
FII money
flow is still negative but some reduced intensity. They bought for just one day
in July month so far. Our market has two negative factors, one is FII Money
flow and other is Bank Nifty. We saw weakness in Bank Nifty form the day when
market turn pessimistic about rate cut. Both are interlink now and Indian
market desperately need a rate cut. It must be one man decision and I have no
hope from that one man. If weak Indian rupee is fresh excuse then it is only
RBI’s duty to take essential steps.
European
markets were in big sell off on Friday night on political concerns in some
part. US market rebounded well from its intraday low point. It is important to
note that major US indices have closed above 50 days moving average. It is
suggesting for a major run away rally ahead.
Technical charts
are suggesting that as long as Indian market is above 5800 levels, we can hope
for higher crosses. I have already said this earlier also that the next crucial
levels are 5900-5906. Cross over of 5906 will trigger fresh wave of rise. As long
as we are below 5900 we can expect choppy moves before crucial crossover. This can
be irritating waiting but traders has handful of choice.
For Indian
market, Banking and metal stocks have refused to recover. Those are extremely
oversold with positive divergence. Will that ever recover? Believe it, it’s the
weakness of Indian rupee is hurting stocks price a lot.
Equally, I
heard that we can expect some major reform announcement this week by finance
minister.
Strategy
for Nifty July future – SGX JULY NIFTY is down
by 45 points and trading at 5827. It is showing washed put trade due to
weakness in Hang Seng and giving up trades on Nikkei. I can say that whole
Asian market is trade against US market cues. Technical charts are suggesting
for support at 5820-5800 after that gap down, if comes. I am expecting intraday
recovery on Nifty. It is looking like phase of consolidation before breaking
5900-5906 levels.
S&P
500
– Current formation is giving a hint that S&P 500 will give a new all-time
high by July month itself or by first week of August.
I have
already stated for Friday that we will get a cross of 1624-1630 ranges. It was
negative one time and then took intraday shoot up. Initial, it was bad news as
good job data. Anyway, technically we got close above 50 days moving average. This
is showing that next range for S&P 500 is giving to be 1660+ which is
almost 2% from here. It is looking to move way higher. May be 1700 is also in
waiting for S&P 500 this time.
Regards,
Praveen
Kumar
