You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 24
September 2013: -
On 23
September 2013, FII Sold INR 80.57 crs and DII Sold INR 745.88 crs
FII bought
two gaps up days very heavily but they fail to give support to their decision
of buying higher levels. This is typical moves by them in recent month. We are
just few days away from derivative expiry now. Remember, so far this is highly
broad month for trading and hence options set up is looking wild. I feel that
right now technical may go at back foot. Do not worry; I feel no harm in
accepting the truth. There is two way reading for charts.
First way
is, if I assume that Nifty extended its gain in a band then support should
emerge at 5850 to hold this up trend. Bulls must give their best now. This view
is very clear and easily visible on charts without any great confusion. Note that
200 DMA is at 5840 right now which is going to support the band.
Second way
is more complex. Due to broad series so far, many wild options are still open. It
is showing for the range of 6200 to 5600 which is just too big to believe. Note
that this month Nifty has a range of more than 1000 points. This is not the
only concern; we have too many wild gap up and gap down in this series. This is
definitely going to make things complex and wild. Only time can answer how wild
this can be.
Text book
target based on wave theory is that we may see 5700 levels sooner or later. If it
comes on expiry day then I will not be shocked. So we are at 5900 with
possibility of 5700 and a bounce from 5850 as well. I may be in better
condition to add more during trading hours.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty September future – Nifty future is
likely open flat but trading scope may be wild. There is one guarantee that we
will see extremely volatile week again. Leave trades if you are light hearted. There
is a technical support at 5870 which may result a trading bounce. This bounce
can be wild and big. This may be due to RSI positive divergence which is on the
beginning stage on hourly chart and visible on 15 min chart.
S&P
500
– I had a view for a move towards 1710 then 1700 and then 1690. We got low at
1697. I suggested booking short near 1700 only. Still, I am expecting the test
of 1690 but those may be complex and choppy moves. So, I am deciding to go on
wait and watch mode again. Oscillation between 1710 to 1690 is the only
possibility and you cannot enjoy this kind of moves.
Regards,
Praveen
Kumar
