You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 22
July 2013: -
On 19 July
2013, FII Bought INR 252.26 crs and DII Sold INR 229.10 crs
FII has reduced
the intensity of selling but they are still not buying in a confident way. They
bought marginal amount on Friday. We got corporate earnings by HDFC which was disappointing
but Reliance figures were stable. I still believe that Indian market is moving
higher we are going under the phase of global rally. Last time when S&P 500
was at 1688, Nifty was at 6200+. Now S&P 500 is at same levels but Nifty is
not even at 6100 levels. This has happened due to weakness in financial and
banking stocks.
This rise
becomes the story of rise in Reliance, ITC and HUL. This it is perhaps the
first rally which moved without banking stocks. It is still a waiting time for
banking stocks.
Technical
charts are still suggesting for higher move and giving a hint for 6111 levels. Wave
theory suggests that we are in the progression of wave ‘c’ which may finish in
the zone of 6111 to 6133. There is a small concern that RSI is giving small
negative divergence and it can be confirm if we start closing lower. So it is
very important that Nifty need to get higher close. I am optimistic for higher
closing. We are in derivative expiry week so I am expecting tremendous
volatility. It is interesting to see how banking stocks are going to react now.
Strategy
for Nifty July future – SGX JULY NIFTY is giving
a hint for flat start. It is even better what SGX Nifty was showing on Friday
night. I believe that we can see the levels of 6111 to 6133 levels on July
futures too. Technical charts are suggesting that as long as it is above
6000-5980 levels then we can hope for the cross above 6100 levels. As banks are
not participating so it is not easy to bet big. It is looking like choppy
session before hitting 6111 levels but key should be banking stocks.
S&P
500
– As hinted from past many days, it hit a new all-time high. So we got new all-time
high on 18 July 2013 itself. Now there is a possibility of either price
correction or time correction but this is not a compulsion. Technical charts
are suggesting that as long as 1675 holds we can expect more rise. We may see
find it tougher to cross psychological mark of 1700. If it has to cross 1700
then today might be a good day. even after fall in google and Microsoft, we saw
better closing.
Regards,
Praveen
Kumar
