You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 31
October 2013: -
On 30 October
2013, FII Bought INR 1016.77 crs and DII Sold INR 550.60 crs
Above figures
shows that FII has gave their best but still nifty stopping near 6250 only. Now
we have derivative expiry today. Global cues are not as good as market was
needed. I feared this and strongly suggested “not to buy” even on break out.
Asian
markets suffered a glancing blow on Thursday after the U.S. Federal Reserve's
latest policy outlook was deemed less dovish than some had wagered on, lifting
both bond yields and the dollar.
I feel
that fed meeting goes as no event so far for the world as reactions are very
limited and expected. We are on derivative expiry day and almost on multi year
high. Nifty has closed exactly at 6252 levels. Technical charts are definitely advising
caution but not giving any big sell for threatening fall yet. It can emerge
today but who can predict derivative expiry day. It should be extremely
volatile.
What is
the possibility of hitting new all-time high? Well, if it has to happen then it
will happen only on Muhurat trading day. Before that, we need to see what is
going to happen today and how market close for this month series. I am
concluding this as we may not get any big trigger to sell in just two days.
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 likely
to open down a little today. It has trading support at 6220 only. Suppose if it
breaks 6220-6200 ranges then only we can think for decisive dip. Well, there is
no great reliability for expiry day. It depends on traders if they want to hold
long or want to cover long. On higher side 6270-6280 will act as stiff trading
resistance. I am repeating that if we close with even small negatives then we
are very close to get new all-time high on Muhurat trading day. This will come
due to euphoria. We should get a dip before that. If it comes today then it
will be better.
S&P
500
(USA) – I am giving a strongest
possible warning – RSI and MACD divergence is giving sell after sell. This
divergence is running from 1690. Do not believe the momentum blindly.
USA got independence
in the year 1776. Some coincidence as S&P 500 makes top at 1776 which can
be a short term top. Equally a figure which is just very near to expected 1780.
I believe that US market needs few more trading sessions to realize that they
are close to tapering. There must be something more to cause a dip. Let us see
today’s session. Break below 1760 should actually give hint for 1730.
Regards,
Praveen
Kumar
