You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 25
July 2013: -
On 24 July
2013, FII Sold INR 404.50 crs and DII Sold INR 328.80 crs
We have
derivative expiry for July month series today. RBI added fuel for bears in this
market which has brutally crushed banking and financial stocks. We need to be
clear that RBI is giving hint for rate hike. The way recent steps come I am
sensing for either CRR hike or repo rate hike or both. It is just not making
sense but this is reality. It is my personal view that D. Subba roa become
worse RBI governor of my life time.
Technical charts
are suggesting that it has already broken the trend line of rising pattern. It is
giving me resistance in the zone of 6020-6035 levels. Above 6035, I will expect
for short covering on derivative expiry day.
In the
down side we can expect support at 5670 levels. If it breaks then it can give
5940 to 5910 levels. Clearly, when rate hike fear comes then technical will go
at back foot. So far, Indian market has shown great resilience. Situation will
be worse if global correction begins.
We have a
chance of rebound after gap down opening.
Strategy
for Nifty July future – SGX JULY NIFTY is down
by 40 points. There are chances that we will see opening near yesterday’s low.
If it breaks 5970 then this market will find it tougher to rebound. Unfortunately,
sentiment is worse on derivative expiry day. Only short covering rebound can
help bulls. Real my intraday updates for more details.
S&P
500
– It corrected in the last trading session and came at 1685 levels. One needs
to see for the support at 1675 level. Break of 1675 will give 1660. I still believe
that after this pullback S&P 500 will rebound strongly to cross 1700
levels. It is better to see the pattern of strength to emerge which can either
come at 1675 or at 1660 levels.
Regards,
Praveen
Kumar
