You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 11
July 2013: -
On 10 July
2013, FII bought INR 75.46 crs and DII bought INR 28.78 crs.
FII were
net buyer in cash market even after panic sell off in last 90 minutes of trades
yesterday. It was bad news flow over Reliance which triggered selling. I strongly
believe that that news flow may not affect stocks price. Talk of gas price ceiling
has not practical sense.
European
market closed in red last night but still those were stable. Federal Reserve Chairman Ben Bernanke said on Wednesday that the U.S. economy
continues to need highly accommodative monetary policy. It gave a strong boost to US market
future. This news gives a positive edge to emerging market like India.
One can
expect higher and kick off opening. I am expecting 100 points higher opening
and then we will see the importance of 5906 levels. I have already said earlier
that one should use current consolidation to buy. Not to make exit. Charts are
suggesting that we will see a further move towards 5950 on the cross of
5900-5906 levels.
We will
see improvement on Indian rupee too. As of now I am seeing appreciation on
Indian rupee towards 58. Shocked? It is definitely expected after fed comments.
Last thing I want is that RBI should also go in action and give us a repo rate
cut. Note that Indian rupee closed on very good note aftermarket hours.
If some conditions
satisfy then we will see the beginning of journey towards new all-time high.
Strategy
for Nifty July future – SGX JULY NIFTY is
trading higher by almost 92 points which is indicating for higher start. Right
now it is at 5902. If we get further follow up (which may come on short
covering) then we will see a big rising day. Cross above 5906-5916 will give me
levels above 5950. Will this act as bull’s gap up? Yes, it can. I bought this
consolidation and will bet for higher 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.
As said it
has crossed 1655 but closed just below. On higher side crossovers of 1655 will
give a move towards possible new all-time high. So, S&P 500 is moving for
further 2-3% rise. Now technical support will stand at 1640-1627 levels till it
make new all-time high. I have already indicated for this recovery earlier
starting from 1560.
Regards,
Praveen
Kumar
