You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 27
August 2013: -
On 26
August 2013, FII Sold INR 607.43 crs and DII Bought INR 409.99 crs
India is
under an untold financial crisis. Our rupee is losing its value and there is a
further scope of further depreciation. Firstly, government of India has not
done anything for years and now they are doing all such things to add further
damage. Welcome to ‘Food security bill’ and its political ambition. I am not
against this kind of bill but I am against the timing of this kind of bill. I am
not talking about political timing. Clearly, I feel that our economy is in the
state where government should “cut out” its expenses rather than adding more subsidies.
Market is
ready to react with it. You can just hope that damage should not be too big. I am
expecting pressure on banking stocks again. Market is already discounting many
big negative factors. I feel that this market has shown great relative strength
while economic fundamentals are so poor. Believe me that even 5400 Nifty is
also a big achievement.
Technical
charts are not so hopeless. We are just two trading sessions away from
derivative expiry. It will add further volatility. Only logical technical
support is at 5400 levels. An initial dip is expected today and then it will
follow recovery in second half of trading. When I am saying recovery then I do
not mean for banking stocks. Keep your eye on Indian rupee and NSEL issue too.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty August future – Firstly, it will
be 50 points negative start. Then one can expect trading support to emerge at
5400 to 5380 levels. It is not easy to decide about further move because it
will depends on many event which will occur during trading session only. It may
give a shock to traders before expiry.
S&P
500
– It has a likely target at 1670 levels which it has almost tested yesterday. We
saw a pin point fall from 1670. It makes the range wider. Expected range for
trading can be from 1640 to 1670. I still feel that S&P 500 has formed a
pattern which can result significant weakness in US market. Yesterday’s higher
opening was looking as perfect place to initiate shorts. Remember, even DAX has
resistance at 8450 levels.
Regards,
Praveen
Kumar
