You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 09
December 2013: -
On 06
December 2013, FII Bought INR 863.77 crs and DII Sold INR 743.93 crs
We will
get clear picture today. Market will challenge its life time high which is at
6357. BJP gave what market was anticipating. It will cause another wild gap up.
Nifty closed at 6260 in past trading session which is just 100 points away from
its life time high. If we get a gap up as suggested by SGX Nifty then it will
surely open above life time high.
SGX Nifty
is hinting opening of 130 points higher. Well, it is not going like many
traders were feared past week. It is not going to opening 300-400 points gap
up. This is good thing as market must save itself from overreaction.
If previous
top of 6357 remains untraded after wild gap up then it cannot be easy to
conclude for gap fill theory. I can say just one thing; do not jump after gap
up. Wait and watch before you take any position. I have no position as of now
as I preferred to go blank before event.
Technically,
there cannot be any resistance if it breaks previous all-time high. It will enjoy
for the verdict of good governance and change after long policy paralysis. Do note
that Indian market was the only one who has failed to break its life time high
in the year 2013. This is a lesson for UPA.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty December future – NIFTY future will open
way higher today, may be near 6450. It should attract short covering. In the
process of short covering it may come near 6500 levels. We can easily expect
rush and panic amongst bears now. Be cautious at higher levels like 6500. It is
not going to easy day at all although it may generate technical target of 6600
also if we revive well above new-life time high.
S&P 500 (USA) – I still believe that 1813 is
going to be a challenging resistance. If it manages to surpass 1813 then one
need to accept for the newer target of 1854 for the month of December. The rally
which has started in the month of January has still some leg but it must be
near to stop now. Let us see what is coming. I will prefer to trade long only
above 1813 and that’s also if trades sustain for some time above 1813. Fed
minutes will be on trader’s radar which will come on 17-18 December 2013.
Regards,
Praveen
Kumar
