You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 19
July 2013: -
On 18 July
2013, FII Sold INR 178.29 crs and DII Sold INR 239.41 crs
Looking on
above figures it is easy to understand that we have seen a short covering rally
yesterday. For the first time we have seen some short covering in banking
stocks. It was driven by better than expected result by Axis bank. Still, charts
have not changed much for banks yet. It needs buying to get rid of pain.
I was
already quoting for new all-time high for US market and we got it yesterday
night. Even European market goes for newer monthly high. Comparing to any other
indices, Indian market has not moved to that extent. It has happened due to tremendous
weakness in banking stocks. Otherwise days would have been much better.
Yesterday,
we got Axis Bank and TCS results. Both were better looking numbers in my view. Expect
some good reactions on TCS today. Results for companies are not as poor as
market did fear. We will get Reliance number today which may act catalyst for
bulls.
Technical
charts are advising long trades only. Technical support for today’s trading
will be at 6000-5990. We have a chance of hitting 6111 levels on higher side. It
should not be choppy days but things depend on many outcomes other than
technical.
Strategy
for Nifty July future – SGX JULY NIFTY is
trading with loss of almost 30 points. It is at 6027 levels. Right now Japanese
index Nikkei slipped by 550 points from high point. Overhang is reflecting on SGX
Nifty. I am expecting support at 6010-6000 levels. If it has to hit 6110-6120
then it will not any day better than today. Let us see. We need to be cautious
from topping formation. I hope that it will not come so soon but cannot deny
such situations.
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.
So we got
new all-time high on 18 July 2013 itself. I was expecting this to happen but it
happen little earlier. Charts are saying that we may see the top formation now.
As it is earning season so it may try to move beyond technical limit. My condition
for newer life time high got satisfied. Time retracement is suggesting for 1700
which is make or break levels. Are we going to form top in USA? I have no
answer today. I am avoiding fresh long as of now.
Regards,
Praveen
Kumar
