You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 05
August 2013: -
On 02
August 2013, FII Bought INR 283.79 crs and DII Sold INR 340.60 crs
Highlight
of this week can be a possible ‘death cross’. It is simply reverse of golden
cross over. It means that now 200 DMA will get a cut of 50 DMA from higher
side. Refer to the chart. How important is this? Let us see when we saw ‘golden
cross over’. It has happened on 30 July 2012 when it was just above 5100
levels.
Why it is
so scary? Firstly, when almost all global indices are on either at 52 week high
or at lifetime high, we are getting this kind of possible crossover on Nifty. I
am still saying that it is a possibility, it has not done yet. We may see a
technical bounce before fall. I have already said earlier that if we have to
touch new all-time high then it must be in the July itself which has failed.
Technical
charts are still suggesting that 5650 will act as strong trading support in any
down side. I gave this level in advance on my intraday updates yesterday. We are
going to see a higher opening today. I bought the dip on Friday looking on
bullish RSI divergence on hourly chart. No great hope unless Nifty stand above
5750. Keep your eye on Indian parliament also. Expect lots of unexpected drama
as usual. If we are going to see death cross over then whole blame has to go on
government of India and Indian political and parliamentary system. Do not blame
FII. Now everyone has to pay for ultimate policy paralysis.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty July future – SGX AUGUST NIFTY is
trading higher by 45 points right now. It is looking to be in favour of my
position at least for initial minutes. Any failure below 5650-5670 will be
decisive for Nifty august month future. It is going to happen sooner or later. Rise
is coming due to the effect of positive divergence of hourly chart. It is
likely to open at 5740. Support will be at 5715-5700 after opening.
S&P
500
– It has opened weak on Friday but closed on strong note. It is giving a hope
for fresh hope for a higher test near 1740. Now, I am feeling that we are going
to see a high in August month itself. We have a great possibility to make
another short term top by this week or early next week. I am expecting this top
to form either at 1724 or 1745 levels. It may be few points here and there. I am
still warning, there is no possible topping out sign yet. I cannot advise
shorting unless it gives some pattern with such hint.
Regards,
Praveen
Kumar
