You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 17
July 2013: -
On 16 July
2013, FII Sold INR 357.40 crs and DII Sold INR 210.55 crs
FIIs are
making exit from slower pace than compared to June month. It is not new to note
that major big money is exiting from emerging market to an extent. Indian market
is not in worse condition in term of money flow although Indian rupee has much
bigger weakness. We have seen rise in Indian stocks against all add. Now, RBI
gave a huge disappointment with a hint for rate hike. Recent steps are beyond
my understanding. I strongly condemn any such steps which give a hint to
compromise with growth with GDP nearing at 5%. This kind of steps can do irreparable
damage and trigger massive slow down.
Government
of India gave nod to hike cap in 13 sectors. They hiked cap to 100% in telecom sector.
Market may want to react or may not want to react. I said earlier also when
they allowed FDI in retail last year that these are cosmetic reforms. I views
remain same that these are cosmetic reforms. Tell me one thing how many dollar
we got by allowing FDI in retail? I knew this to happen. It is not that foreign
money is sitting with a line to come in India. We must need to improve economy
and business environment first then only those steps can be effective.
Technical
charts are advising caution as long as Nifty stand below 5980. I said for two
supports yesterday, one was at 5960 and another was at 5910. It fluctuated in
that range with respect for 5910. I still feel that this market should not fall
to any threatening levels. Only thing is that it needs to stand above 5980 to
ease those fears of fall. Banking stocks are just turning hopeless.
Strategy
for Nifty July future – SGX JULY NIFTY is
trading dead flat ignoring all steps taken by government of India. If it manages
to stand above 5990 then we can see the levels of 6040-6050 again which the
next trigger for rise is. Technical support will emerge at 5940-5930 levels
only. It is expected to be a dead day to trade.
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.
A pause
was expected with some price correction or time correction. Correction length
so far is from 1684 to 1672 which is acceptable. I feel that it may give some
more pullback but 1655 should not break now. I feel that it is just an expected
pullback before another massive rally. This pullback will end today or tomorrow
only.
Regards,
Praveen
Kumar
