You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 17
October 2013: -
On 15 October
2013, FII Bought INR 1136.23 crs and DII Sold INR 1035.34 crs
Nifty
almost remain at same point for third day in a row. It is just trading here and
there near 6100 levels. FIIs are buying heavily in cash market from past three
days. I always believe that FII used to buy the top heavily. They are doing
same things this time too. Charting is suggesting for a pause and we got that. I
need to add that we are still away from a possible threshold point for
pullback.
I like to
draw your attention towards one event that took place after market hours. CBI
has launched a FIR against KM Birla in Coalgate scam. This can spread panic
amongst corporate. Who is wrong and what is wrong that we cannot know but
definitely it is a sentiment dampener. I like to see market reaction for today.
In my view, it can hurt many stock prices who were dealing with coal field in
India.
Technical analysis
is still suggesting some kind of top can emerge nearer to 6120. I am
considering the decisive resistance at 6160 levels. We have a bright chance of
moving higher again after a profit taking but that is too early to conclude. If
drop comes with some disappointing news flow then ‘rise after fall’ will be
delayed.
Equally,
today it decisive day for US market in terms of technical and in terms of
fundamentals too. Will S&P 500 able to surpass 1730. I do not know but I
know that 1730 is a decisive level now. Failure will invite big sell off. Worry
over US shut down is over and so it needs a new trigger.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty October future – NIFTY future is
going to see a flat opening as indicated by SGX NIFTY right now. Technical support
will emerge in the zone of 6070 to 6050 levels. On higher side 6180-6200 will
be decisive resistance. It is very clear that range to get direction is bigger
but this generally happens after sharp moves. I am taking this as a sign for
pause and it will continue. It will favour bears once it starts trading below
6070-6050.
S&P
500
(USA) – I said for rise as long as
it holds 1692. It is still holding and generating the expected wild move after
worry over US shut down. Now it is just near to its previous all-time high. Logically,
1730 will be a resistance and a decisive point too. Have a look at MACD on
daily chart. Three tops come with drop on MACD top. This is challenging. Now it
is goes above 1730 then there cannot be anything to worry but if it fails then
a real big and brutal sell off will start anytime. Note that I am saying for drop
which needs just 10 point of stop loss. Let us see.
Regards,
Praveen
Kumar
