You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 10
October 2013: -
On 09 October
2013, FII Bought INR 326.58 crs and DII Sold INR 97.10 crs
It is very
rare to see the Indian market has shown better strength than US in any 1-2 week
time frame. US have their own problem. Indian trade deficit data lifted the
sentiment and gave a very strong wanted and expected rebound. Who were
expecting this kind of data? Yes, we were. It is not a magical data; it is just
a base effect. Even after so many round of downgrade in past few months, I strongly
believe that fundamental of economy is near to worse. Another fact is that we
are not going to revive sooner. It will take 4 to 6 quarters at least. Many years
back, I said that near to 9-10% GDP, Indian might now handle it.
Now, I am sensing
that near to 4%, we might not go down as bad as people fear. Remember, invest
is a relative opportunity. I am buying in a bad time on the expectation of good
time. You cannot find anything absolutely defined about good time and bad time
of economy.
I am at
least happy to see one positive close in USA. We might see a pullback
corrective rally which has started yesterday.
Technical
charts are suggesting that we should move towards 6100 now. Charts are on
breakout. It is suggesting for technical support to emerge at 5980 to 5960
levels. I would not mind even small profit taking as market will throw out weak
bulls.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty October future – NIFTY future has
already seen massive short covering yesterday in second half, especially in
last hour of trades. We may expect a flat opening with trading support at 6000
levels. There are good chances for Nifty future to move higher even from
current levels. We may see soft opening but it can try to pick up momentum
again. It requires a fresh intraday judgment to conclude about buy levels.
S&P
500
(USA) – I have quoted about two
technical supports, one at 1642 and next at 1624. S&P 500 rebounded from
1646. Now this is a good technical formation for a corrective upward rally. You
can name it as mini rally. Problem is that once it has broken 1670, the main
trend has changed for short term. It should take a rise towards 1670 to 1680
zone. Now suppose, if there will be no solution over shut down when S&P
would be near to 1670-1680 then we will again see a dip. This time it will come
to hit 1624,
Regards,
Praveen
Kumar
