You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 26
July 2013: -
On 25 July
2013, FII Sold INR 442.94 crs and DII Sold INR 138.80 crs
FII has
sold heavily in the June month. They were relatively muted for July month
series. It is interesting to see if fresh money will flow now or not. We got
May month correction but I never give importance to money flow since then.
Bank Nifty
slipped by 8.60% so far in July month. Major part of the pain has done for now.
Recent steps taken by RBI has caused last 4-5% fall. Apart from that, many
banking stocks has given poor set of quarterly numbers which was expected.
Nifty has
38.20% retrenchment coming at 5892 (against the rise from 5566 to 6093). I am
assuming that pullback has almost done now. Take a note that rising trend
sustain as long as it respect 38% retrenchment. On higher side it is important
to see it sustaining above 5970 levels first which is first logical resistance.
I am expecting a small gap up today. India VIX is still suggesting that we are
in rising trend.
In any
case if it breaks 5890 then one can expect levels of 5830 to 5800. It should
not happen. Market is waiting for the outcome of upcoming monetary policy
review. Market has fear of rate hike. I hope that this fear will not be a
reality.
Keep an
eye on HUL,PNB and BoI result which will come today.
Strategy
for Nifty July future – SGX AUGUST NIFTY is
up by 20 points. It has trading with heavy premium of 40 points. It may not
remain same. On higher side it needs to sustain above 6000 marks to use the
word stable. It is likely to open near
5970. Let us see if it can cross 6000 or not? If it crosses 6000 then expect
good rise by today itself.
S&P
500
– We have 80% chance that pullback is over with a bottom at 1680. It is very likely
to give a strong cross above 1700 marks. It may happen today also. The length
of this upcoming rise can be impressive again. First logical target above 1700
should be near 1730 levels. It is a fact that US market is the strongest market
of the world. It is saving many part of the world from fall like India.
Regards,
Praveen
Kumar
