You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 28
August 2013: -
On 27
August 2013, FII Sold INR 1373.99 crs and DII Bought INR 480.50 crs
US market
and EU market slipped on the fear of possible US attack on Seria. This fear is
dominating global sentiments right now. Indian market is already struggling
from many other fears too. Even small selling can push Indian market lower. We
saw Indian rupee at 66.30 levels after ‘food security bill’ get passed in
parliament.
So far,
there is no hope for Indian rupee. It is getting weaker day by day and impact
is adverse on long term bond yield. I can strongly quote that nation is paying
for ‘policy error’ committed by policy makers. This policy error is the result
of political ambitions and political mistakes. It must be frustrating Indian
investors too. I strongly hope that this kind of brainless policy making will
continue for longer time. We have election next year in May month. Only God
knows what kind of damage can come till that time.
International
market is showing that we should prepare our self for 67 on Indian Rupee
against US dollar. True, now we do not “Bharat Nirman”, we need “Bharat
Punarnirman”.
Technical
charts are giving hope for 2-3 days and then washed out with one single gap
down and fall. So far, Nifty is likely to test 5250 levels again and support
can emerge at 5200 marks. I am strongly quoting that technical has lesser value
in panic fall.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty August future – It is going to see
another dip opening. For whole August month, we got only GAP opening. 30% were
higher opening and 70% were lower opening. Let us see if it can react for some
reversal from 5220-5200 levels. It is not easy to deal. Wait for first hour
bottom to conclude. Higher weightage of banking stocks in NIFTY is giving more
pain.
S&P
500
– I said yesterday that it is forming structure for weakness but I was not
aware about this kind of reason for weakness. Technical charts are saying for
some pause at 1624 to 1630 levels before fresh sell off. It does not matter if US attack on Seria or
not but I will prefer to book short at 1624-1620 levels. A break below 1620
will give 1600-1598 as short term bottom.
Regards,
Praveen
Kumar
