You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 16
December 2013: -
On 13
December 2013, FII Sold INR 432.02 crs and DII Sold INR 42.07 crs
So, FII
sold in cash market on Friday. Just the way I said this many times that FII are
known to buy tops heavily and sold bottom heavily. They bought Rs 2500 crs on
top, if you remember. Money flow is something which cannot give you true
picture for trading. That’s why you should believe technical analysis to trade.
I am
expecting soft opening and trades before critical events are in line. We have
Fed meeting and RBI policy this week. I expect 6150 and 6080 as most critical support
on year end. Market is almost looking over sold in short term. We may be on the
verge of a trading bounce but signal has yet to see confirmation.
When I say
about confirmation then I am indicating for the formation of some positive divergence
on main momentum and technical indicators. I still warn that before recovery it
may try to give a panic to the traders. I booked all my shorts on Friday’s dip.
Now, I am waiting for fresh signal to build my trades.
Just two figures
to watch as supports. One is at 6150 which is closer. Once it breaks 6150 then
it may open move towards 6080. Note that a move towards 6080 does not mean the
test of 6080. Better confirmation for recovery will be only above 6230 which are
too far.
Be caution
on banking and reality stocks as those may remain nervous.
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 soft today. Immediate trading support is at 6160 levels. If it breaks 6160
then there is nothing to test for recovery. If it sustain above 6160 then we
have some meaning to think for bounce. I will update more during trading hours.
Break of 6160 may give us some panic sell off but those may be opportunity to
buy. I want to dip and more dip to buy from low.
S&P
500
(USA) – We are on another critical
week for US market as fed will take decision about tapering. S&P is
sustaining below 1780 which is definitely an odd sign for bulls. I suggested
for short from failure of 1813 and still retaining my views. As long as it is
staying below 1780 we have meaning to hold short. It is expected to enter in
the range of 1750 to 1740. It is not the market for light traders. Maintain distance
if you cannot afford the risk of volatility.
Regards,
Praveen
Kumar
