You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 07
November 2013: -
On 06
November 2013, FII Bought INR 271.70 crs and DII Sold INR 545.20 crs
I always
believe that FIIs are used to buy top. They bought heavily near 6200 and now
with it is coming down they are slowing their momentum. One must note that all
this is happening when Dow Jones hits another life time high yesterday. I am
concerned as Indian market has again started a phase of underperformance.
We are
just hanging on n-line of inverse H&S pattern. It has broken 6240 which
will act as tough resistance now. We can give many trading supports like 6180
as next. Still I feel that one should be cautious and must avoid trading long. It
require fresh wave of strength to surpass its previous all-time high.
I was
concerned on VIX front. I said this earlier too that 18 is a decisive levels
for VIX. It is 50-50 possibility for next move. Either we will see 23 or we
will see 14. Now, it gave rise above 19 and showing for more strength although
it will fall later. Cross over of 21 on VIX will surely give concern for bulls
on index.
Technical
support for the day is at 6180. On higher side major technical resistance will
be at 6240 to 6260.
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 flat. As it has broken 6280 then we have reasons to expect a move
towards 6215 levels. If it breaks 6215 by today only then we can see panic
selling. On higher side 6300 will act as trading resistance. Possibility of new
life time high is out of talk now. I am repeating that one has to be scared of
a phase of underperformance in Indian. It has history of turning brutal. Global
cues have lesser importance.
S&P
500
(USA) – It stopped before 1776 but
DJIA advanced to make a new life time high. I have said long back that if
S&P is not giving top at 1730 then we have high chance of seeing top near
1780-1800. Now, at this kind of higher end one must avoid long. Wait for
opportunity to trade on short side now. Surely, this is highly risky to short
US market at top. I feel that it is a limited risk if one place small stop loss.
Regards,
Praveen
Kumar
