You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 12
July 2013: -
On 11 July
2013, FII bought INR 638.26 crs and DII Sold INR 234.61 crs.
Without any
great participation from FII, Nifty has bounced almost by 400 points. This bounce
came against all odds. Just think that when Nifty were at 5900+ last time,
Indian rupee was at 57. This time it came above 5900 when Indian rupee is
coming at 60. This is relative great strength of Indian market. If Indian
market is a laggard then only and only policy makers are responsible.
RBI comes
out with pessimistic thoughts about rate cut. Their actions were justified when
GDP was at 7% and inflation was at 9%. Same action cannot be good when GDP is
coming at 5% and inflation below 6%. Every economy always has some problems and
it is the duty of policy makers to find mid-way. Rate cut is desperate need of economy. I am
not talking about stock market, I am talking about economy. It seems that RBI
can give rate cut in a phase of stagflation. Is RBI waiting for negative
inflation?
Technical charts
are suggesting for the test of 6000 marks by today itself. Technical support
will emerge at 5900 levels. Do you know that Nifty has 50 days moving average
at 5916 which it has already crossed yesterday?
All eyes
will be on Infosys result. Technical charts are giving a hint for some positive
outcome of upcoming quarterly result. Let us see if we get some reasons for
rise.
I like to
watch for recovery in banking and metal stocks. These two sectors have not
participated at all in the recent 400 points of pullback. Many stocks are still
near multi year low, example is Tata Steel.
Strategy
for Nifty July future – SGX JULY NIFTY is
trading higher by almost 35 points which is indicating for higher start. Right
now it is at 5970. This was looking impossible just few days back. Technically,
Nifty would like to make attempt to cross 6000-6012 levels. Cross over of 5980
on 5 minutes charts will give rise towards 600-6012. Technical support will
emerge at 5916-5900 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 we
got new all-time closing high on 11 July itself. One can expect a small pullback
before crossing 1688, if it has to come. Very soon next week we will see
S&P 500 crossing above 1700 levels also. It may have Friday’s pullback. Strong
technical support will be at 1655. Believe me; you will get July high which
perhaps only few people can think. I am strongly bullish since 1560 in US
market.
Regards,
Praveen
Kumar
