You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 17
December 2013: -
On 16
December 2013, FII Bought INR 159.55 crs and DII Sold INR 129.50 crs
WPI came
at 7.52% and market turn nervous again. Well, it was nervous only, it was not a
panic like situation. Eventually, Nifty hits its 50 DMA which is at 6145 now. This
support is not expected to be violated. Remember, Nifty is falling continuously
after hitting new all-time high. Although I can say that it never looks good to
hit 50 DMA immediately after hitting life-time high.
I was
strongly bearish from 6350 onwards and took my profit on Friday. Then we
decided to go long yesterday. We saw a pre-FOMC rally in US market as well as
Euro zone. I believe that it will help us to get a higher opening.
I turn
bullish softly but I still cannot believe that it can really sustain. Note that
Nifty need to surpass above 6230 and sustain to give any good sign for the
continuation of rising trend which is really a tough job. Only consoling factor
is that mid cap and small cap indices are still giving some hope. I generally
do not make choice before going to FOMC but if I have to make then I would be
bullish only.
For today’s
session look for support at 6150-6145 and prefer to watch out for a move
towards 6230 first. Once it settles above 6230 then one can really hope
something good.
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 with some real gap up. SGX Nifty is hinting for opening near 6230. If this
happens then tougher task would be to cross above 6260. I believe that we can
see this level. Once we go above 6260 then we can restore good confidence in
market. Let us see if we really above to sustain above critical threshold in
this market.
S&P
500
(USA) – I said to stay short as long
as it is below 1780. Now it is above 1780 and showing the typical pre-FOMC
strength. It is looking like market slipped to factor out tapering. Technical charts
are suggesting for a move towards 1800 as long as it is staying above 1780
levels. So for now, till FOMC meeting, market looks to gain strength with just
one strong closing.
Regards,
Praveen
Kumar
