You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 19
November 2013: -
On 18
November 2013, FII Bought INR 1158.57 crs and DII Sold INR 655.40 crs
FIIs took
full charge to make a stronger recovery. Just in two days of time, Nifty
bounced by more than 200 points from its low of 5972. I have already said that
it will find its first meaningful and stiff resistance only at 6240. Honestly, I
was not expecting this to come so sooner. Perhaps, it is global cues which have
given technical figures before time. Dow gave 16000 levels last night.
China has
started it biggest reform of last more than two decades. This has triggered
massive rally in Asian market yesterday. Whole Asia may gain from this but not
India. I fear that some curious money may shift from India to China. We all
know how poor our fundamentals are in recent period. Be honest, we have no
great hope from policy making in near future. Still, it is my speculation only.
Let us see if this happens.
Technical
charts are suggesting for stiff resistance at 6240. I am not claiming that it
can test. It may stop even at 6200 or may try to violate the meaning of 6240
also by few points. In terms of supports, we have 6160 to 6140 as crucial
support. Do not expect the end of recovery as long as we are above 6160-6140
ranges.
I have no
plan to buy top so I prefer to wait and watch near 6240. I still find auto and
metal as good bet for long side.
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 today. Immediate resistance will be at 6250 and then at 6270
levels. Intraday support will emerge at 6190-6200 levels. There is no point to
short as of now but we may see some retrenchment from higher levels. All
depends on how global market shapes up in afternoon hours. When we have
possibility of stopping at US market then it is better to be cautious. My worry
is that we are hitting higher targets before than expected.
S&P
500
(USA) – I quoted yesterday,” If this
rally has to end then it may fail before 1803. To trade fresh long deals, wait
for the crossover of 1803 and then enjoy another 1% to 1.50% rally.” Have a
look on the high on S&P 500. It hit 1802.33 and slipped by almost 11
points. Patterns are forming for top but lot of confirmation has to come. I
cannot suggest fresh long unless it stand tall above 1803.
I always
believe that strongest bulls of the world are in USA so I am not in hurry to conclude
for massive shorting in the anticipation of top formation.
Regards,
Praveen
Kumar
