You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 30
July 2013: -
On 29 July
2013, FII Sold INR 231.77 crs and DII Sold INR 101.26 crs
I will
address yesterday’s fall as a nervous sell off before RBI meeting. Bank Nifty
slipped over 11% in July month so far and a nonstop falloff almost 23% from its
recent short term top. These are the levels which can make panic to even long
term investors.
Nifty has
almost retraced 50% of its recent rise. An exact level is 5830 which should be
acting as strong technical support. Well, it was trying to break 5830 marks in
last minutes of trading yesterday. This is a concerning pattern. I still
believe that it should bounce now.
I can
still say that we are in the zone of strong moving average supports. All eyes
are on RBI policy right now. Honestly, RBI should opt for rate cut if they are
concerned even a little about growth. Yesterday’s economic survey report is
suggesting me that there should not be any possibility of hike. Well, but no
one can claim anything about RBI governor.
Whatever RBI
has done to save rupee was also not impressive in term of outcome. Bank rates
need to stable to down to save economic from a big disaster. Let us see. Worse case
out – hike in CRR.
Upcoming
two days are important for US market too as we have fed meeting on 30 July and
31 July 2013.
Strategy
for Nifty July future – SGX AUGUST NIFTY is
up by 20 points. All eyes will be on RBI after opening. As long as it is saving
5860 levels you can expect bounce towards 5930 levels. Break below 5860 will
give panic selling towards 5820-5800 levels. I am expecting positive outcome
from RBI policy.
S&P
500
– It has to break 1700 on higher side by this week only. It can happen anytime
now irrespective of fed meeting today and tomorrow. Technical charts are
suggesting for strong trading support at 1675 levels. On higher side it will
break 1700 levels to trap all short deals. Cross over of 1700 may generate the
target of 1740 to 1750 levels.
Regards,
Praveen
Kumar
