You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 19
August 2013: -
On 16
August 2013, FII Sold INR 563.23 crs and DII Bought INR 732.23 crs
India VIX
came at 23.64 levels. It has gained over 26% by Friday only. This is showing
the panic which has gripped market now a day. It is useless to figure out for
reasons. We have too many reasons. You may accept or reject like our finance
minister and prime minister has done. I accept that situation is not as bad as
1991 but it might be just better only. I am still repeating that government and
RBI should focus growth and only growth to avoid further turmoil in economy. Do
not try to solve a problem which is beyond the scope of any solution. They tried
to solve inflation from 2009. Has they solve? I am happy that Prime minister
said to focus growth.
I have last
year also for Indian rupee for a target of 60-62. Now when 62 become reality
then technical set up is turning worse. Overseas traders are already betting on
65 from past 2 months.
We saw a
black Friday. This kind of fall is a characteristic after ‘death crossover’. My
charts are suggesting that support can emerge at 5460 to 5420 levels. I am still
saying, technical can give you supports but it cannot say which support will
get respect. Market is expected to open on nervous note. I have a simple rule
that I do not try to find trades in panic mode of this kind. It is always
better to take real time cues. I am expecting recovery from 5460 but so far it
is a hope.
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 a fall of 20 points, right now at 5480. I cannot give any
importance to SGX now. Market is likely to get support near 5460-5430 levels. I
am quoting wider range of support. It will be better for traders to avoid first
60 minutes of trading. Wait, watch and then deal.
S&P
500
– It is still heading towards 1640 which may act as ‘make or break’ kind of
condition. I can say that this market needs a strong positive divergence before
rising. Such conditions are still far away from formation. Meantime, we can
expect this slide to continue. Technical support is at 1640. If it breaks then
one can expect 1616 to 1600 marks too.
Regards,
Praveen
Kumar
