You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 23
October 2013: -
On 22 October
2013, FII Bought INR 794.90 crs and DII Sold INR 845.30 crs
Indian market
turned dead in past two trading sessions and just hovering near 6200 levels. It
is neither breaking 6160 on lower side nor breaking higher above 6240. In fact
two day’s range is just 6163 to 6220. We saw some rise in mid cap and small cap
index. It is showing that people has shifted their focus from large cap to
small cap stocks. This generally happen after big rally. In normal condition,
this is a sign for the continuation of the rally.
We can be
concerned only if small cap and mid cap index starts underperforming but such
conditions have not arrived so far. Nifty is odd 2.50% from its all-time high
while Sensex is moving more rapidly towards its all-time high.
I said earlier
this week, “In short, Monday, Tuesday or Wednesday, a short term top is coming.
Now, it can be at 6240 or 6300 or even may be nearer to new all-time high at
6360. I would rather be very happy to see 6360. Note that I am not claiming for
new all-time high, it is just my excited optimistic thought of a hardcore bull
of past few weeks.”
We are on
Wednesday. Let us see what is coming. We have not seen the cross of even 6240.
The range of 6160 to 6240 will makes a trader more confused. Shall you short on
anticipation of pullback due to negative divergence or shall you go long on
momentum based on money flow? It is still a billion dollar question.
For
today’s trading, keep an eye at 6160 for Nifty spot. It is likely to see a fall
if breaks 6160. Technical resistance is at 6240. Let us see what is coming. I was
on soft short side but I exited yesterday and turn on neutral side for fresh
decision.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty October future – NIFTY future may
open on another flat opening. I hate this kind of movement. It can just confuse
for direction. I am still considering 6240 – 6260 as stiff technical
resistance. In lower side, it will get support at 6160-6170 levels. Which side
will it break? It is better to go for wait and watch mode. At least I doing
that.
S&P
500
(USA) – I have quoted for a move
towards1760 well in advance. Look at yesterday’s high, it is 1759.33. How many
have quoted this? More important question is what is coming next. One simple
line, “Either it should end at 1760 or it will go to hit 1784. If it coming
above 1760 then probability is higher for even 1800.” In short, US indices are
on euphoric mode. I am expecting a topping formation but confirmation is still
missing.
Regards,
Praveen
Kumar
