You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 09
October 2013: -
On 08 October
2013, FII Bought INR 226.32 crs and DII Sold INR 454.35 crs
Nifty
stopped on exact at my quoted resistance of 5980. This is not a god sign. It is
showing that now it needs great and big efforts to cross above 5980. Bears were
about to lose their but they were saved. Global sentiments were showing that we
cannot easily expect a break out for big rally as US shut down continues. Situation
goes worse on Dow jones last night. DJIA slipped almost 1000 points from its all-time
high. This dip is almost a straight line dip.
Remember that
fed Chairman Ben Barnanke has an ideology to keep stock price higher for reviving
growth. Right now, they are easily giving up. IMF has also reduced growth forecast
for whole and India too. I am still saying that 4.50 or 3.80, it hardly matters
now. We all know that situations are troubling and data can only create panic.
If I compare
all troubles (like US shut down, Indian currency depreciation, lower growth,
higher bank rate etc) versus Index then I can say that Indies are still on
winning note. From past three months it is just trying to move against all
odds. This is what I call as relative opportunity for investment. It is just
waiting for US government US down to end. Now we need to focus on upcoming
quarterly numbers too.
Technical
charts are giving supports at 5840 to 5800. We are just back on Monday. I am
hoping good intraday recovery after gap down.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty October future – SGX NIFTY is trading
with a loss of 30 – 35 points which is still better than what has happened last
night at USA. Major technical support should emerge at 5880 and then at 5850
only. Recovery is expected to come after gap down. Only thing is that what can
the levels of bottom before recovery? It can be either at 5880 or at 5850.
S&P
500
(USA) – US policy makers are giving
up easily as it is turning the fight for ego. Economy can suffer in a major way
then. It has broken 1670 and directly hit 1655 with a most pleasant dip for
bears. It is clearly the failure of band of 1692 to 1670. Now, world’s most
confident bulls are on back foot. They have invited this trouble. Next
technical support is at 1642 and then 1624. I am already stopped out at 1670.
Regards,
Praveen
Kumar
