You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 01
November 2013: -
On 31 October
2013, FII Bought INR 1875.87 crs and DII Sold INR 833.79 crs
It has definitely
required big amount of buying in past few days to give a cross of 6240 but
finally it came. Now optimism is growing and there is no possibility of any
negative trigger. So, we can expect rise for new all-time high now near Muhurat
trading.
Derivative
expiry goes at highest point of month. It is more important to note that
sentiment has changed with Bank of India’s result. It has driven buying in PSU
banks. Many such banking stocks are giving multi week’s breakout.
It may see
consolidation but new all-time high has a bright possibility. It may come on
auspicious day of Diwali. This might be more like a psychological to get new
all-time high as it has less technical relevance. I added long and prefer to
hold to capitalize the psychological rise.
Still, I can
say that there are few strong warning sign too on the charts and it used to
come at such levels. Earlier we saw those signs on US indices too but those
were brutally crushed by bulls. Can it happen in India? Yes, it can be but being
a trader I cannot ignore.
Technical support
for the day is at 6250-6240. On higher side, it can try to come near 6360-6370
levels. It does not matter it comes today or on Sunday but it is coming. Even for
a fraction of second but new all-time high must come. What is going to happen
after that is a big question. I have no answer for that. So let us wait for
6360-6370 first.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty November future – NIFTY future is likely
to open soft but on optimistic note. It is good that premium turned lower than earlier
in closing minutes. Technical support is at 6280 levels. Expect 6400 or higher
levels. I can say that just for 2-3 days, it is buying in dip market. I was on
side line near 6240 and bought on decisive crossover. I may off load on Muhurat
trading hour. Let us see today.
S&P
500
(USA) – It has given another down
day and closed below 1760. It is a primary sell signal which got expected from
resistance. Note that this time S&P took a sell from resistance of 1780 as
high was 1776. Break below 1760 must have given stress to bulls. Chart need
just one more close below 1760 and what can be said if it comes on last week of
the day. I always suggest focusing for follow up trades. So, if we get below
1760 today also then a possible big dip next week.
If not
then this dip is another typical opportunity to trade long for another attempt
towards 1780-1800 zone.
Regards,
Praveen
Kumar
