You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 10
July 2013: -
On 09 July
2013, FII bought INR 165.60 crs and DII bought INR 37.83 crs.
Money flow
is main concern for almost all emerging market. FII has reduced their intensity
of selling but turning little positive. Big FII money is the need for Indian
market to move higher. I am sensing that we will get that big money as trigger
with a cross above 5900 levels of Nifty.
European
and US market was higher last night which was in line with Indian market. Even Asian
markets are trading higher right now. Majority of concerns are easing out which
is supportive for global market. Tonight, people must be waiting for fed
comments.
Indian market
is trading on stable note but with consolidation moves. We are in 150 points
range from past 8 trading sessions. Banks and metal stocks are not performing
in recent 6% gain on Nifty. This makes many to believe that rally is at its end
point. I think in reverse way and believing what charting structures are
suggesting me. We have reverse H&S pattern with break point at 5906. RSI is
still giving sign of strength.
Technical
charts are suggesting that if trades sustain above 5877 then it might try to
take a move towards 5900 – 5906 levels. It is important to note that we need to
surpass 5906 on higher side to bet a big move in this month. I believe that it
is coming. Only question is when.
Remember mid
cap and small cap stocks are performing better than Nifty. IMF reduced India’s
growth forecast from 5.80% to 5.60%. Say good morning to them for giving wakeup
call so early. I am not giving any importance to this kind of forecasting.
Keep an
eye on news flow from finance minister side. It can give some surprising
trigger anyway and anytime.
Strategy
for Nifty July future – SGX JULY NIFTY is
trading higher by almost 25 points which is indicating for higher start. Right now
it is at 5881. If we get a follow up buying for few 25 points more than we will
get a desired breakout for the cross of n-line. Technical support is at
5850-5825 ranges. Let us pray for the higher cross and we desperately need it
now. If banking stocks supports then what can be more pleasant.
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 quoted for 1655 in the last trading session. It came higher and
stopping just before that. Do not take it as any sign of weakness. I am sure
that it will cross 1655 by today and kick for a big rise again without any
great pulls back. Remember it is rising from 1560. This is a key that I am
betting on rally in India too.
Regards,
Praveen
Kumar
