You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 13
August 2013: -
On 12
August 2013, FII Bought INR 408.36 crs and DII Bought INR 258.81 crs
We got a
bad result by SBIN. IIP contracted by 2.20% in the month of July. CPI came at
9.64%. This is showing the bleeding fundamental of Indian economy. I am not
expecting sooner improvement. It is showing that one should expect more painful
growth data.
What can
be worse than this quarter’s number by Indian corporate? Time has come that RBI
should give up its concern over Indian rupee which is still weaker and almost
near its all-time low. Now, there is no possible short term solution. Any steps
to curb rupee weakness will just hurt growth while rupee will be unstoppable. It
is just like the inflation shoot up from 2008 onwards. I am expecting a 1 USD =
INR 62 today.
Technical
charts suggesting for support at 5580-5584 now. I believe for a move towards
support for initial hours. If it revives near support then bounce will come
again. It is likely to hit levels of 5680 to 5716 in coming days but we need
better confirmation pattern to emerge.
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 with gain of 5 points only. I have already covered my long yesterday which
I took at lower levels in past week. I still believe for a better pullback but
economy data is not supportive. I may opt to buy lower levels again but I am
not able to see a broader opening of higher levels. It is looking like to break
lower if it sustain below 5588 levels.
S&P
500
– It has negative divergence on many crucial technical indicators and rise from
this point should be limited. It is very likely to consolidate before any
bigger correction to begin. The way it has rebounded from low, it is giving me
a hint that there is a possibility of green day today. We can expect 1699+
levels. Let us see.
Regards,
Praveen
Kumar
