You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 24
July 2013: -
On 23 July
2013, FII Bought INR 211.36 crs and DII Bought INR 60.86 crs
These are
small positive-negative data which really does not mean anything. It is still
clear that FII has not shown confidence in Indian market yet. We got another mood
dampener aftermarket hours by RBI.
The apex
bank restricted the limit of individual bank borrowing to 0.50 percent of its
total deposits (or net demand and time liability as it is known in banking
parlance) outstanding as on the last Friday of the second preceding fortnight
from the RBI's daily borrowing window called Liquidity Adjustment Facility (LAF)
in banking parlance.
At the
same time it scrapped its earlier measure that had limited the total LAF
borrowings to the tune of 1 percent of total deposits or Rs 75,000 crore. It
was effective from July 17, 2013.
So,
prepare for another gap down. RBI will never learn with its action. Let me say
one thing one line, lower growth is the root cause of higher NPA. Compromising growth
can never be good for banking health which in turn is equally bad for economy.
Technical
charts are suggesting for support at 6020 and then at 5980 levels. It is
looking like to open for 6020 levels. After that market will look for
clarification from RBI. No pre market study can be prepared for gap down.
Strategy
for Nifty July future – SGX JULY NIFTY is higher
by 25 points. I am worried about market fundamental but I am not worried about
market technical. It is still a buy. Technical charts are suggesting that it
has some resistance at 6080. Cross above 6080 will drive this market higher on
short covering. In short covering it may hit 6111-6133 levels.
S&P
500
– It hit a high at 1698.90. I have already said that it can be tougher to deal
with 1700 psychological marks. Although, it is going to cross but will see some
consolidation before that. This consolidation may give some price correction. I
am expecting support to emerge in the zone of 1680 to 1675 only. It will be
better if it touch 1675. This pullback can generate good momentum for another
bigger rally. One sided rise is making it tougher to deal.
Regards,
Praveen
Kumar
